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Which of the following statements is TRUE regarding financial leverage on a real estate income property? Financial leverage always increases the expected returns on a
Which of the following statements is TRUE regarding financial leverage on a real estate income property?
Financial leverage always increases the expected returns on a property acquisition | ||
Financial leverage generally reduces your risk on a property investment since you will have less equity invested. | ||
Adding leverage to a property acquisition always increases risk | ||
Financial leverage only adds risk to a property acquisition if there is a balloon payment involved. |
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