contestada

Which of the following is false about investing with borrowed money? (5 points)

There is increased risk.

If you lose money, you will still have payments on it.

It is the best way to ensure you have retirement funds.

No investment is a sure deal

Respuesta :

It is the best way to ensure you have retirement funds. 

Retirement funds are generally a conservative investment and investing with borrowed money is seen as a risky activity because it requires payment, regardless of whether you earn additional money through investing or not. Because no investment is a sure deal, the investment process carries risk and the loan requires certain outflows in payments. Therefore, it is not often prudent to use this technique when investing for retirement.