To Diversify,a Homeowner with a Variable-Rate Mortgage Should Choose Investments

question 61

Multiple Choice

To diversify,a homeowner with a variable-rate mortgage should choose investments that

• A)pay higher returns when interest rates rise and lower returns when interest rates fall.
• B)pay lower returns when interest rates rise and higher returns when interest rates fall.
• C)provide a higher return than the market average.
• D)provide a lower return than the market average.

---

Definitions:

Large Group

a gathering of people, typically more than 20, brought together for a common purpose or activity.

Development

The process of growth and change that occurs within an organism or organization over time, encompassing physical, cognitive, and social aspects.

Cognitive Theories

Cognitive theories are psychological frameworks that emphasize mental processes such as thinking, memory, perception, and problem solving as the principal components in understanding behavior.

Intellectual Processes

Intellectual processes involve the mental activities related to thinking, understanding, learning, and remembering, encompassing a wide range of cognitive functions.