Personal Finance (8th Edition) (What's New in Finance)
Personal Finance (8th Edition) (What's New in Finance)
8th Edition
ISBN: 9780134730363
Author: Arthur J. Keown
Publisher: PEARSON
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Chapter 7, Problem 7DC1
Summary Introduction

To determine:

Things that can reduce lender’s risk.

Introduction:

Principle 8: Risk and return go hand in hand : It means that higher the risk higher the return because no one will take the additional risk without any additional income. Hence, if a lender wants to lend his money then he will lend only when he will get adequate return for the risk he is taking.

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