High leverage means:

Financial leverage, which involves using debt to finance assets, can amplify both positive and negative financial outcomes for a company. Therefore, High leverage means High risk. When a company has a large proportion of debt in its capital structure, it incurs significant fixed interest payment obligations. This makes the company more vulnerable to economic downturns, reduced earnings, or rising interest rates, increasing the likelihood of financial distress or bankruptcy.

• Low risk and No risk are incorrect because high leverage inherently increases risk.
• Stable income is also incorrect; high leverage makes income less stable because fixed interest payments must be met regardless of revenue fluctuations, leading to greater volatility in earnings per share.