The range of potential ROEs for a firm that uses financial leverage would tend to be smaller than if the firm used no leverage, other things held constant.

Group of answer choices

True

False

If a firm uses more debt in its capital structure,

Group of answer choices

Then the range of ROEs will be smaller.

Then its financial risk will decrease.

then the standard deviation of its Return on Invested Capital will increase.

then the standard deviation of its ROE will increase.