How would you allocate your loan portfolio across these three dimensions: int_rate ( max = 30.99, min = 5.32, mean = 12.99, std dev = 4.50, Once Std. Dev = 17.50, Two Std. Dev = 22.00), grade ( Grade A Charge Off = 5.84%, Grade C Charge Off = 22.55%, Average A interest rate = 7.16, Average C interest rate = 13.96), and term ( term: 36 months = 15.28%, term: 60 months = 32.96%)? There is no right answer to this question, but you should support your investment strategy with your analysis. 

• One important aspect to consider is your risk tolerance. Would you focus on the safest loans or the riskiest loans? Or would you diversify your portfolio by spreading your investment across different categories?

Second Question

Provide some ideas for how these borrower characteristics ( annual income, whether the income has been verified, type of employment, length of employment, home ownership, state of residence, debt-to-income ratio, outstanding debt, public records, secondary co-signers) could be used to sharpen your investment strategy.

• Would you prefer any of these borrower types over others based on the risk and return tradeoff? You can approach this by comparing int_rate (max = 30.99, min = 5.32, mean = 12.99, std dev = 4.50, Once Std. Dev = 17.50, Two Std. Dev = 22.00) and loan_status (Charged Off - 16338, Current - 13924, Default - 1, Does not meet the credit policy. Status: Charged Off - 33, Does not meet the credit policy. Status: Fully Paid - 105, Fully Paid - 66278, In Grace Period - 186 , Late (16-30 days) - 97, Late (31-120 days) - 443) across different borrower types.
• For instance, would you want to rely on income verification or not? Would you prefer co-signed loans or not? Is higher outstanding debt a positive or negative? Select a few dimensions to consider and use these dimensions to provide additional discussion about your proposed investment strategy.