CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

What is the leverage factor associated with a 40% margin rate?

A. 1.4
B. 2.5
C. 40.0
Correct Answer: B

Leverage factor = (total assets / equity) = (100%/40%) = 2.5

User Contributed Comments 4

User Comment
kalps Leverage factor = total assets / Equity 100/40
sarath Leverage factor = 1/margin rate..
irapp92 @kalps thanks, it's comments like those that really make analystnotes worth it..
khalifa92 Leverage factor: the multiplier of using leverage on investment.
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