If a firm uses discretionary leverage, it must present performance using:

If a firm uses discretionary leverage, it must present performance using:
A . all- cash basis i.e. removing leverage effects.
B . both actual returns and all- cash basis.
C . none of these answers.
D . actual returns.

View Answer

Answer: B

Explanation:

For discretionary leverage, both actual returns and all- cash returns must be presented.