A Bell-Shaped Distribution,with a Large Number of Scores in the Middle,tapering

question 58

True/False

A bell-shaped distribution,with a large number of scores in the middle,tapering to very few extremely high and low scores is known as a negatively-skewed curve.

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Definitions:

Home Mortgage Securitization

The process of bundling home loans into securities that are then sold to investors.

Mortgage Originators

Mortgage Originators are institutions or individuals that work with borrowers to complete a mortgage transaction, including the creation and processing of home loans.

Asset Liquidity

A measure of how easily an asset can be converted into cash without significantly affecting its market price.

Default Risk

The probability that a borrower fails to meet the obligations of paying back the interest or principal on a debt on time.