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Explain How the Introduction of Asset-Backed Securities Has Allowed Investors

question 70

Essay

Explain how the introduction of asset-backed securities has allowed investors to take advantage of higher returns from loans that most investors could never make on their own.


Definitions:

Range

The difference between the highest and lowest values in a dataset, indicating the spread of the data.

Variability

A statistical measure that describes the dispersion or spread of data points in a data set.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points around their mean.

Mean Deviation

The average deviation for all scores from the mean of a distribution, calculated as the sum of the absolute value of the scores’ deviations from the mean divided by the number of scores.

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