Sources of Risk for an Investment Include

question 14

Multiple Choice

Sources of risk for an investment include

• A) Variance of returns and business risk
• B) Coefficient of variation of returns and financial risk
• C) Business risk and financial risk
• D) Variance of returns and coefficient of variation of returns
• E) All of the above

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Definitions:

ARM

Adjustable Rate Mortgage; a type of mortgage loan where the interest rate varies throughout the loan period based on an index.

Equity

The amount of a home that an owner actually owns.

Loan Balance

The amount of money that remains to be paid on a loan, excluding interest or fees that may accumulate.

Sales Tax

A percentage paid to the government of sales on products or services.