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As the loan-to-value ratio increases for...

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题目

As the loan-to-value ratio increases for a real estate investment, risk most likely increases for:

选项

A.debt investors only.

B.equity investors only.

C.both debt and equity investors.

答案

C

解析

C is correct. The higher the loan-to-value ratio, the higher leverage is for a real estate investment, which increases the risk to both debt and equity investors. :C是正确的。贷款价值比越高,房地产投资的杠杆率越高,这会增加债务和股权投资者的风险。