Posted by Bob on January 09, 19101 at 07:47:55:
Given your approach to the problem of risk and return for an investment in a portfolio of loans in contrast to individual loans, and given your definition of risk based on uncertainty in estimates in contrast to bad loan write-offs (allowance for doubtful accounts), it seems that you would benefit from reviewing an introductory textbook on econometrics and a textbook on financial econometrics or financial decision making.