What Action Is Involved in Constructing a Synthetic CDO

question 3

Multiple Choice

What action is involved in constructing a synthetic CDO?

• A)Selling protection via CDS contracts.
• B)Buying protection via CDS conracts.
• C)Selling tranches of other CDOs.
• D)Buying a diversified equity portfolio.

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Definitions:

Profit Motives

The driving force behind business activities focused on achieving financial gain and maximizing earnings relative to costs.

Task Structures

Refers to the ways tasks are organized, managed, and executed within workgroups or organizations, affecting efficiency and outcomes.

Bass's Transformational Leadership

A leadership approach that emphasizes inspiring and motivating followers to exceed their own interests for the sake of the group or organization by transforming their attitudes and behaviors.

Empowering Leadership

A leadership style that emphasizes the delegation of authority, encouragement of autonomy, and development of confidence and skills among team members.