How does the loan-to-value ratio of a private mortgage affect the risk and return of the investment? Select one: a. A higher loan-to-value ratio increases the return and decreases the risk of the investment. b. The loan-to-value ratio has no effect on the risk and return of the investment. c. A higher loan-to-value ratio decreases the return but also decreases the risk of the investment. d. A higher loan-to-value ratio increases the return but also increases the risk of the investment. What factors should a brokerage consider when evaluating the credibility of a private lender? Select one: a. The lender's gender, education, and financial strength. b. The lender's track record, gender, and age. c. The lender's reputation, track record, and financial strength. d. The lender's political affiliation, age, and social status.

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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How does the loan-to-value ratio of a private mortgage affect the risk and return of
the investment?
Select one:
a. A higher loan-to-value ratio increases the return and decreases the risk of
the investment.
b. The loan-to-value ratio has no effect on the risk and return of the
investment.
c. A higher loan-to-value ratio decreases the return but also decreases the risk
of the investment.
d. A higher loan-to-value ratio increases the return but also increases the risk
of the investment.
Transcribed Image Text:How does the loan-to-value ratio of a private mortgage affect the risk and return of the investment? Select one: a. A higher loan-to-value ratio increases the return and decreases the risk of the investment. b. The loan-to-value ratio has no effect on the risk and return of the investment. c. A higher loan-to-value ratio decreases the return but also decreases the risk of the investment. d. A higher loan-to-value ratio increases the return but also increases the risk of the investment.
What factors should a brokerage consider when evaluating the credibility of a
private lender?
Select one:
a. The lender's gender, education, and financial strength.
b. The lender's track record, gender, and age.
c. The lender's reputation, track record, and financial strength.
d. The lender's political affiliation, age, and social status.
Transcribed Image Text:What factors should a brokerage consider when evaluating the credibility of a private lender? Select one: a. The lender's gender, education, and financial strength. b. The lender's track record, gender, and age. c. The lender's reputation, track record, and financial strength. d. The lender's political affiliation, age, and social status.
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