Credit Rating and Required Rate of Return: Suppose you and Warren Buffett borrow money from a bank. The bank will assess your credit ratings differently. Maybe the bank could offer Warren Buffett a loan without interest since it can be advertised as a bank used by the renowned investor. However, it will likely charge you interest because you have a lower credit rating and less fame than Warren Buffett. The interest rate each borrower faces, based on their creditworthiness, is called the required rate of return for creditors. Under the same conditions, the cost of poverty is much higher for the poor than for the rich. Poverty inherently involves costs. - Joseph’s “just my thoughts”
We often play ladder games when betting. If you want to win, you can choose the option as far as possible from the marked “tagger”. If the “tagger” is displayed on the middle option, the most likely chance of not getting caught is when selecting the option at both ends. If you have a tag on one end, you can avoid the tag by choosing the other side end option. This is because the probability of winning a ladder game follows the “normal distribution” model. - Joseph’s “just my thoughts”