Question

A friend asks you to invest $500 at 5 percent interest in her business. you want to invest but are concerned because your friend has not had any business experience. how can you offset your risk?

Answer 1

You can counterbalance or offset your risk by requesting for a higher interest rate. By having a higher interest rate can give you more profit and with this, it can also pay more to the family income by accumulating the amount you receive when you invest in interest each year.

Answer 2

by asking for a higher interest rate is correct on gradpoint