All Other Things Being Equal,which of the Following Best Describes

Multiple Choice

All other things being equal,which of the following best describes the effects of leverage on an investment's risk-return characteristics (assuming the expected return is greater than the lending rate) ?

A) Lower expected return,lower risk
B) Lower expected return,higher risk
C) Higher average return,higher risk
D) Higher average return,lower risk
E) Risk-return characteristics have no role in investment decision making