Does leverage increase the total size of gain or loss

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1. Does Leverage increase the total size of the gain or loss from an investment or just the percentage rate of return on the part of the investment amount that was not borrowed? How would lowering leverage make the financial system more stable?

2. Identify and describe a futures contract that trades in the CME group. Will a long position or short position in the futures contract be profitable over the next month?

Reference no: EM131944481

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