Which Statement Is Not Correct About Financial Leverage for a $300,000

Which statement is not correct about financial leverage for a $300,000 investment versus a $100,000 investment?

A) The probability of success is the same under both investment options.
B) The payout will be 3 times higher or 3 times lower with the larger investment.
C) The probability of success is 3 times greater with the larger investment.
D) The larger investment increases the return on equity but also faces a greater potential for loss.

Correct Answer:

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