[amp_mcq option1=”Rate of Interest < Rate of Return\" option2=\"Rate of Interest > Rate of Return” option3=”Both A and B” option4=”None of A and B” correct=”option1″]<\/p>\n
The correct answer is: A. Rate of Interest < Rate of Return<\/p>\n
Trading on equity is a financial strategy that involves using borrowed money to finance the purchase of assets. This can be a risky strategy, but it can also be very profitable if the assets appreciate in value. The benefit of trading on equity is that it allows investors to leverage their investment, which means that they can make a larger return on their investment with a smaller amount of money.<\/p>\n
However, there is also a risk associated with trading on equity. If the assets do not appreciate in value, the investor will have to repay the loan with interest, which could result in a loss. Therefore, it is important to carefully consider the risks and potential rewards before engaging in trading on equity.<\/p>\n
Here is a brief explanation of each option:<\/p>\n
[amp_mcq option1=”Rate of Interest < Rate of Return\" option2=\"Rate of Interest > Rate of Return” option3=”Both A and B” option4=”None of A and B” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-47773","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n