A limitation of bond ratings is that they focus exclusively on default risk.
When investing, the bond rating represents the creditworthiness of a corporate or government bond. It's not the same as a person's creditworthiness. Ratings are published by rating agencies and used by investment professionals to assess the likelihood of debt repayment.
Bond Rating is a character-based credit rating system used to assess bond quality and creditworthiness. Investment grade bonds are rated by Standard & Poor's from AAA to BBB- and by Moody's from Aaa to Baa3. Junk bonds have a lower rating.
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Answer: A. legal but not ethical
Explanation: Introducing mortgage plans to consumers in other to cater for their needs by a mortgage-loan officer is not a legal crime which will be penalized by the law. However, it is an ethical obligation on the path of the mortgage-loan officer to explain the modalities attached to a certain mortgage plan to consumers, both the advantages and the demerits. In the options ARM mortgage plan, it affords consumers to pay below the interest rate on the mortgage, this short paid interest are later added to the principal and the rates increases. This may cause a lot more harm than good to consumers who do not have detailed knowledge of this particular loan process.
The answer is A, a saver.
He is putting money aside for later instead of spending it on anything else
The answer would be: Having good interpersonal skills
The Capital Asset Price Modeling (CAPM) gives the formula
for calculating the expected return of an asset given the risk as:
Rs = Rf + β<span> (Rm – Rf)
Where,</span>
Rs = expected return of the financial asset
Rf = risk free rate of return
β = beta
value of the asset
Rm = average
return on the capital market
The factor
(Rm – Rf) is also called as the market risk premium while the factor (Rs – Rf)
is the stock risk premium.
Rs – Rf = β
(Rm – Rf)
Rs – Rf = 1.7 (0.08)
Rs – Rf = 0.136 = 13.6%
Answer:<span>
greater than 12% (= 13.6%)</span>