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You now have enough information to begin forming a loan investment strategy. Consider the variables int_rate, grade (A, C), and term (36, 60 months). How

You now have enough information to begin forming a loan investment strategy. Consider the variables int_rate, grade (A, C), and term (36, 60 months).

  • How would you allocate your loan portfolio across these three dimensions (int_rate, grade (A, C), and term (36, 60 months))? 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?

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