Which of the Following Risk Pertains to Mortgages More Than

question 30

Multiple Choice

Which of the following risk pertains to mortgages more than to other long term financial instruments?

• A)default risk
• B)interest rate risk
• C)prepayment risk
• D)liquidity risk

---

Definitions:

Z-scores

A statistical measure that describes a value's relationship to the mean of a group of values, represented in terms of standard deviations from the mean.

Standard Normal Distribution

A probability distribution with a mean of zero and a standard deviation of one, represented by the bell curve.

Z-scores

Standard scores that indicate how many standard deviations an element is from the mean, used to compare data points across different scales or distributions.

Standard Normal Distribution

A normal distribution with a mean of zero and a standard deviation of one, used in statistical analysis.