Leverage will _____ shareholders' expected return and ______ their risk.
A) increase; decrease
B) decrease; increase
C) increase; increase
D) increase; do nothing to

Name: Leverage will _____ shareholders' expected return and ______ their risk. A) increase; decrease B) decrease; increase C) increase; increase D) increase; do nothing to
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

Leverage increases both the potential return on equity and the risk, as it amplifies the effects of gains and losses.

Leverage Will _____ Shareholders' Expected Return and ______ Their Risk

Leverage Will _ Shareholders' Expected Return and __ Their Risk