According to the risk/return trade-off, the higher the risk, the lower the interest rate charged by the lender.

Name: According to the risk/return trade-off, the higher the risk, the lower the interest rate charged by the lender.
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According to the risk/return trade-off, the higher the risk, the higher the interest rate charged by the lender. This is because lenders require a higher return to compensate for the increased risk of default or loss.

According to the Risk/return Trade-Off, the Higher the Risk, the Lower