Why could a lender's expected return be lower when the risk premium is increased on a loan?

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Why could a lender's expected return be lower when the risk premium is increased on a loan? In addition to the risk premium, how can a lender increase the expected return on a wholesale loan? A retail loan? LO.1

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Financial Institutions Management A Risk Management Approach

ISBN: 9780073530758

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jul 24, 2024 07:00 AM

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Why could a lender's expected return be lower when the risk premium is increased on a loan?

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Financial Institutions Management A Risk Management Approach

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