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28 April, 18:21

Carlos holds a portfolio of stocks and bonds. He is planning to buy a real estate property worth $150,000. He can use financial leverage to make this purchase by:

selling bonds from his portfolio worth $80,000 and writing a check for $70,000.

taking a personal loan worth $100,000 and selling bonds worth $50,000 from his portfolio.

paying $150,000 in cash from his savings account.

selling stocks from his portfolio worth $50,000 and paying $100,000 in cash.

paying $75,000 cash in the first installment and selling shares worth $75,000 from his portfolio to pay the second installment.

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  1. 28 April, 22:01
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    - Taking a personal loan worth $100,000 and selling bonds worth $50,000 from his portfolio.

    Explanation:

    The financial leverage refers to the control of a greater amount of assets by borrowing debt, which will cause the returns on the owner's investment to be amplified because the return of the assets is bigger than the cost of the debt.

    In this particular case, given the rest of the options are related to the use of assets to purchase real estate property, this is the correct answer: Taking a personal loan worth $100,000 and selling bonds worth $50,000 from his portfolio.
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