House Prices

Why risk and return go hand in glove - Mary Holm

Q. I am considering investing with a finance company, but I keep getting told that the higher the interest rate, the higher the risk.

Everyone I ask says, "Yes, that's true", but no one can really tell me why that is true.

It is a bit like believing that the sun comes up in the east - which is not true, if you think about it.

It seems to me that the su

Monday, April 26th 2004

ccess or failure of any business is entirely dependent on the quality of the people running the business.

I keep reading about many apparently substantial companies losing their investors' money, so what to do?

I would appreciate your comments on why the term "the higher the interest rate, the higher the risk" seems to be perceived as always being true.

A. First, let's look at your statement about business success depending on the quality of the people.

It's true that every move a company makes is made by people. But some highly intelligent and honourable people have made what turned out to be terrible business decisions. There's got to be an element of luck in there.

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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