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An Investor Can Create the Effect of Leverage on His/her

Question 83

Multiple Choice

An investor can create the effect of leverage on his/her account by:
I. buying equity of an unlevered firm
II. by investing in risk-free debt like T-bills
III. by borrowing on his/her own account


A) I only
B) II only
C) III only
D) I and III only

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