Statement

True

False

On average and everything else held constant, borrowers will attempt to pay the maximum possible cash flows that will motivate savers and investors to participate in the transaction.

All things being equal, savers and investors prefer more risk to less risk and prefer lower risk premiums on projects exhibiting higher levels of risk.

All things being equal, savers and investors expect to receive some amount of maturity premium as compensation for their deferred consumption.

An investment that can provide a $10\%$ return should attract more investment capital than an otherwise identical investment that can only provide a $6\%$ return.

Investments providing cash flows that are more likely to equal their expected value are said to exhibit more risk.