Why Didn't Investors Caught in the Subprime Lending Crisis Take

question 20

Multiple Choice

Why didn't investors caught in the Subprime Lending Crisis take earlier note of the risks inherent in investments known as collateralized debt as obligations (CDOs) ?

• A)Greed and the desire for high returns.
• B)Banks were selling and buying them.
• C)Risks were buried in complex, jargon-oriented documents.
• D)Risks were diversified over many mortgages.
• E)Only three of the above.

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