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 these are correct.

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