Operating and financial leverage
What is the difference between operating and financial leverage? Can there be too much financial leverage in a firm? Why or why not?
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Beginning three months from now, you want to be able to withdraw $2,300 each quarter from your bank account to cover college expenses over the next four years.
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The common stock of Air United, Inc., had annual returns of 15.6 percent, 2.4 percent, -11.8 percent, and 32.9 percent over the last four years, respectively. What is the standard deviation of these returns?
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