Question: Financial leverage: a. arises because most borrowed funds have a fixed interest rate. b. arises because most borrowed funds have a variable interest rate. c.

Financial leverage: a. arises because most borrowed funds have a fixed interest rate. b. arises because most borrowed funds have a variable interest rate. c. usually has no bearing on the risk associated with a company. d. is a concept that does not apply to individuals. I have "A" as my answer. I hope I am right, but if I'm wrong can you help me understand whY

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