Explain why securities firms have used a high level of financial leverage in the past. Explain how

Question:

Explain why securities firms have used a high level of financial leverage in the past. Explain how the leverage affects their and their risk.
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...