Please answer the following questions and give the explanation 1) If an investor is choosing between two potential investments, one with an expected leveraged IRR of 36% and the other with an expected leveraged IRR of 18%, the investor should choose: a) The investment with the higher expected return because it will generate more profit b) The investment with the lower expected return because it must be safer c) Neither investment because the returns seem too good to be true in today's market d) The risks of each investment must be carefully weighed against the expected returns during the due diligence process to determine whether either investment should be chosen 2).If you borrow at a rate lower than a property's unleveraged IRR, the leveraged return will: a) Increase as the LTV ratio is increased b) Decrease as the LTV ratio is increased c) Increase as the LTV ratio is decreased d) Depends on the unleveraged IRR 3) Refinancing a property with a larger loan at the same interest rate is advisable for all of the following reasons, expect: a) To obtain cash without paying tax on the additional loan amount b) To release part of a property's equity without having to sell the, property c) To increase financial leverage and increase the return on equity d) To decrease the risk of a loan default that might lead to foreclosure 4) Positive financial leverage occurs when: a) An investor borrows interest-only and thereby avoids amortization payments b) An investor borrows at higher loan to value ratios c) An investor borrows non-recourse d) An investor borrows at an interest rate below the property's unleveraged IRR Please answer the following questions and give the explanation 1) If an investor is choosing between two potential investments, one with an expected leveraged IRR of 36% and the other with an expected leveraged IRR of 18%, the investor should choose: a) The investment with the higher expected return because it will generate more profit b) The investment with the lower expected return because it must be safer c) Neither investment because the returns seem too good to be true in today's market d) The risks of each investment must be carefully weighed against the expected returns during the due diligence process to determine whether either investment should be chosen 2).If you borrow at a rate lower than a property's unleveraged IRR, the leveraged return will: a) Increase as the LTV ratio is increased b) Decrease as the LTV ratio is increased c) Increase as the LTV ratio is decreased d) Depends on the unleveraged IRR 3) Refinancing a property with a larger loan at the same interest rate is advisable for all of the following reasons, expect: a) To obtain cash without paying tax on the additional loan amount b) To release part of a property's equity without having to sell the, property c) To increase financial leverage and increase the return on equity d) To decrease the risk of a loan default that might lead to foreclosure 4) Positive financial leverage occurs when: a) An investor borrows interest-only and thereby avoids amortization payments b) An investor borrows at higher loan to value ratios c) An investor borrows non-recourse d) An investor borrows at an interest rate below the property's unleveraged IRR
