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Which of the following statements is true? Borrowing money to purchase an asset means that your return on equity will be higher than if you

Which of the following statements is true?

Borrowing money to purchase an asset means that your return on equity will be higher than if you had purchased the asset in cash.
Borrowing money to purchase an asset means that your return on equity will be lower than if you had purchased the asset in cash.
Borrowing money to purchase an asset means that your return on equity will be more risky than if you had purchased the asset in cash.
None of the above.

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