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Two investment firms seek a loan for future investments. One is seeking to invest in expanding its digital loans portfolio. The other is seeking to
Two investment firms seek a loan for future investments. One is seeking to invest in expanding its digital loans portfolio. The other is seeking to expand its traditional motor vehicle loan portfolio. They both want to expand. When the two owners go to the financial markets for a loan, which one is likely to get a lower interest rate? Explain in terms of the risk-return principle?
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