Podcast
Questions and Answers
What does low yield signify in investments?
What does low yield signify in investments?
- High risk and illiquid investments
- Safe and liquid investments (correct)
- No correlation with investment risk
- High return with low risk
How can an investor reduce risk by diversifying their portfolio?
How can an investor reduce risk by diversifying their portfolio?
- By investing in a mix of different investments (correct)
- By avoiding cash reserves
- By putting all money into a single stock
- By focusing on a single investment type
What is the primary impact of rising market interest rates on a fixed-rate loan?
What is the primary impact of rising market interest rates on a fixed-rate loan?
- Decreases lender's risk exposure
- Allows lender to reinvest money at higher rates
- Doesn't affect lender's risk exposure
- Increases lender's risk exposure (correct)
What is the main goal when a lender charges the borrower more due to additional risk?
What is the main goal when a lender charges the borrower more due to additional risk?
In the context of investments, what does a high yield typically indicate?
In the context of investments, what does a high yield typically indicate?
What is the role of the Securities and Exchange Commission (SEC) in securities trading?
What is the role of the Securities and Exchange Commission (SEC) in securities trading?
How does securitization impact the mortgage industry?
How does securitization impact the mortgage industry?
What are the three key investment characteristics that investors consider?
What are the three key investment characteristics that investors consider?
How can an investment be described as 'safe'?
How can an investment be described as 'safe'?
What does liquidity refer to in investments?
What does liquidity refer to in investments?
What can be a consequence of underestimating the risk of a particular investment?
What can be a consequence of underestimating the risk of a particular investment?
How do some lenders compensate for the reduced yield due to prepayment?
How do some lenders compensate for the reduced yield due to prepayment?
What impact do high mortgage rates typically have on real estate activity?
What impact do high mortgage rates typically have on real estate activity?
Which factor can influence market interest rates charged by lenders?
Which factor can influence market interest rates charged by lenders?
What risk is associated with poor investment decisions resulting from bad judgment?
What risk is associated with poor investment decisions resulting from bad judgment?
