All of the following are arguments against using leverage, except:

Question

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Leverage involves using borrowed money to increase the potential return of an investment. Arguments against using leverage include increased volatility of returns (A), the risk of default and losing the entire investment (B), and losing financial flexibility (C). However, the fact that lenders include inflation expectations in the interest rates they charge (D) is not an argument against using leverage; it's a general condition of borrowing.

All of the Following Are Arguments Against Using Leverage, Except