When Evaluating an Investment in Mortgage Pass-Through Securities,several Important Characteristics

question 5

Multiple Choice

When evaluating an investment in mortgage pass-through securities,several important characteristics of the underlying mortgage pool should be considered.Which of the following is NOT an important characteristic?

• A) The amount of overcollateralization of the mortgage pool
• B) The geographic distribution of the mortgages
• C) The amount of seasoned mortgages included in the pool
• D) None of the above are important in the evaluation of mortgage pass-through securities

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