Correspondent Blog
Tag: Risk-adjusted Return
08/26/24
Loan Risk and Return – The Two Loan Riddle
It is rare that banking lends itself to a logic test, but we have been trying this loan risk and return riddle on hundreds of bankers across the country for years, and only a few bankers choose the correct answer. The riddle goes like this: You are presented with two loans. Loan A is priced…