The Is Used for Estimating the _ ; the _

question 56

Multiple Choice

The is used for estimating the _ ; the _ _ is used for developing the .

• A) validation sample; discriminant function; analysis sample; classification matrix
• B) classification matrix; discriminant function; validation sample; analysis sample
• C) analysis sample; discriminant function; validation sample; classification matrix
• D) none of the above

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Definitions:

Mortgage-Backed Security Tranches

Portions of a mortgage-backed security segregated by risk, payment timing, or other characteristics to suit different investors.

Default Risk Exposure

The likelihood that a borrower will be unable to make required payments on their debt obligations.

Investment

The allocation of resources, usually money, with the expectation of generating an income or profit.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during the bond's life, usually at the discretion of the bondholder.