If a Portfolio Manager Had to Estimate the Fair Value

question 57

Multiple Choice

If a portfolio manager had to estimate the fair value of illiquid mortgage-backed securities,which of the following would he/she most likely identify as the level of inputs to determine this?

• A) Level 1.
• B) Level 2.
• C) Level 3.
• D) None of these.

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Definitions:

Delivered

In a behavioral context, refers to the administration or provision of a consequence or reinforcement following a behavior.

Positive Reinforcement

A process in behavioral psychology whereby a behavior is strengthened by the consequence of experiencing a positive condition.

Stimuli

External or internal cues that evoke a response from an organism or system.

Probability

A measure of the likelihood that a specific event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.