How does the interest rate of a private mortgage affect the risk and return of the investment? Select one: a. A higher interest rate increases the return but also increases the risk of the investment. b. A higher interest rate increases the return and decreases the risk of the investment. c. The interest rate has no effect on the risk and return of the investment. d. A higher interest rate decreases the return but also decreases the risk of the investment. 4 How does the creditworthiness of the borrower affect the risk and return of a private mortgage investment? Select one: a. A higher creditworthiness of the borrower decreases the risk of the investment. b. A higher creditworthiness of the borrower increases the risk and return of the investment. c. The creditworthiness of the borrower has no effect on the risk and return of the investment. d. A higher creditworthiness of the borrower increases the return but also increases the risk of the investment.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Pls help ASAP for bothPls help ASAP for both

How does the interest rate of a private mortgage affect the risk and return of the
investment?
Select one:
a. A higher interest rate increases the return but also increases the risk of the
investment.
b. A higher interest rate increases the return and decreases the risk of the
investment.
c. The interest rate has no effect on the risk and return of the investment.
d. A higher interest rate decreases the return but also decreases the risk of the
investment.
4
Transcribed Image Text:How does the interest rate of a private mortgage affect the risk and return of the investment? Select one: a. A higher interest rate increases the return but also increases the risk of the investment. b. A higher interest rate increases the return and decreases the risk of the investment. c. The interest rate has no effect on the risk and return of the investment. d. A higher interest rate decreases the return but also decreases the risk of the investment. 4
How does the creditworthiness of the borrower affect the risk and return of a
private mortgage investment?
Select one:
a. A higher creditworthiness of the borrower decreases the risk of the
investment.
b. A higher creditworthiness of the borrower increases the risk and return of
the investment.
c. The creditworthiness of the borrower has no effect on the risk and return of
the investment.
d. A higher creditworthiness of the borrower increases the return but also
increases the risk of the investment.
Transcribed Image Text:How does the creditworthiness of the borrower affect the risk and return of a private mortgage investment? Select one: a. A higher creditworthiness of the borrower decreases the risk of the investment. b. A higher creditworthiness of the borrower increases the risk and return of the investment. c. The creditworthiness of the borrower has no effect on the risk and return of the investment. d. A higher creditworthiness of the borrower increases the return but also increases the risk of the investment.
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