7-91 Which term refers to the risk that the cost of rolling over or re-borrowing funds will rise above the returns being earned on asset investments?

Question

Quizplus · Accepted Answer

Refinancing risk refers to the risk that the cost of rolling over or re-borrowing funds will rise above the returns being earned on asset investments. This can happen if interest rates increase, leading to higher borrowing costs. It can be a concern for investors who rely on borrowed funds to finance their investments.

7-91 Which Term Refers to the Risk That the Cost