The ability to obtain a given equity position at a reduced capital investment, and therefore magnify returns, is known as
A) leverage.
B) straddling.
C) hedging.
D) triple witching.

Question

Quizplus · Accepted Answer

Leverage allows investors to use borrowed funds or financial instruments to increase their investment's potential return, effectively enabling them to control a larger position with a smaller amount of invested capital.

The Ability to Obtain a Given Equity Position at a Reduced