Solved

Max Is a Mortgage Broker, Who Is Paid by Commission

Question 14

Multiple Choice

Max is a mortgage broker, who is paid by commission. When interest rates decline, he does a lot of business and earns a lot of money, as more people buy houses or refinance their mortgages. But when interest rates rise, business falls substantially. To diversify, Max should choose investments that


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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions