Goldman Sachs' GSAMP Trust Was Able to Create AAA Rated

question 12

Multiple Choice

Goldman Sachs' GSAMP Trust was able to create AAA rated securities by:

• A)Separating the mortgage portfolio into tranches and assigning the tranches to share risks of default equally.
• B)Not disclosing the risks clearly
• C)Guaranteeing or protecting some tranches
• D)Separating the mortgage portfolio into tranches and designating the A-1, A-2, and A-3 tranches last in order, after the M-1 to M-7 and B-1 to B-3 tranches, to suffer losses if a default occurred
• E)All of the above

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