What are the potential benefits of diversifying a portfolio with private mortgages? Select one: a. Decreased volatility of the portfolio. b. Increased overall return of the portfolio. c. Increased liquidity of the portfolio. d. Decreased overall risk of the portfolio. Sebastian, a mortgage broker, is analyzing the financial statements of a corporate borrower that requires private mortgage financing. In reviewing the retained earnings, Sebastian sees that the retained earnings have been decreasing while dividends have been increasing. Out of the following statements, which best reflects this scenario? Select one: a. There is less money to reinvest in the business b. Investors are taking less money in dividends each year c. Retained earnings are not relevant for Sebastian's analysis d. There is more money to reinvest in the business each year

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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What are the potential benefits of diversifying a portfolio with private mortgages?
Select one:
a. Decreased volatility of the portfolio.
b. Increased overall return of the portfolio.
c. Increased liquidity of the portfolio.
d. Decreased overall risk of the portfolio.
Transcribed Image Text:What are the potential benefits of diversifying a portfolio with private mortgages? Select one: a. Decreased volatility of the portfolio. b. Increased overall return of the portfolio. c. Increased liquidity of the portfolio. d. Decreased overall risk of the portfolio.
Sebastian, a mortgage broker, is analyzing the financial statements of a corporate
borrower that requires private mortgage financing. In reviewing the retained
earnings, Sebastian sees that the retained earnings have been decreasing while
dividends have been increasing. Out of the following statements, which best reflects
this scenario?
Select one:
a. There is less money to reinvest in the business
b. Investors are taking less money in dividends each year
c. Retained earnings are not relevant for Sebastian's analysis
d. There is more money to reinvest in the business each year
Transcribed Image Text:Sebastian, a mortgage broker, is analyzing the financial statements of a corporate borrower that requires private mortgage financing. In reviewing the retained earnings, Sebastian sees that the retained earnings have been decreasing while dividends have been increasing. Out of the following statements, which best reflects this scenario? Select one: a. There is less money to reinvest in the business b. Investors are taking less money in dividends each year c. Retained earnings are not relevant for Sebastian's analysis d. There is more money to reinvest in the business each year
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