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California Real Estate Exam

Category - Real Estate

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In portfolio risk management, a lender considers:

Diversification
Liquidity
Reserves
All of the above

Explanation

Answer: D - In portfolio risk management, a lender determines what type of loans to have in their portfolio. Questions to aks imclude: How quickly can I sell these loans? What are my reserves? How diversified are these loans? Are they all business? Are they all residential? Are they a mixture of business and residential?

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