Which of the Following Is Not a Reasonable Expectation for Investors

question 54

Multiple Choice

Which of the following is not a reasonable expectation for investors in pass-through mortgage securities?

• A) The securities are readily marketable.
• B) They have little default risk.
• C) The investor receives cash flows in proportion to his/her ownership proportion.
• D) The timing of the cash flow return from the securities is quite predictable.
• E) All of the above are reasonable expectations for investors in pass-throughs.

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Definitions:

Nuclear Families

A family group consisting of parents and their children, regarded as a basic social unit.

Unilineal Descent

Descent traced exclusively through either the male or the female line of ancestry to establish group membership.

Matrilineal Descent

A lineage system where ancestral descent is traced through the mother's line rather than the father's.

Descent Group

A descent group is a social group whose members talk about common ancestry through either matrilineal or patrilineal lines, serving as a fundamental unit in the organization of societies.