Question: From the borrowers perspective, all else being equal, which of the following pairs descriptions most accurately reflects the risk position of an ARM ( adjustable

From the borrowers perspective, all else being equal, which of the following pairs descriptions most accurately reflects the risk position of an ARM (adjustable rate mortgage) in comparison to that of a FRM? Pair 1. Lower interest rate risk and lower default risk, pair 2. Higher interest rate risk and lower default risk, pair 3. Lower interest rate risk and higher default risk. Pair 4 higher interest rate risk and higher default risk

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