Which of the Following Values of Spearman's (Rho)indicates the Strongest

question 35

Multiple Choice

Which of the following values of Spearman's (rho) indicates the strongest relationship between two variables?

• A)-0.91
• B)-0.05
• C)+0.64
• D)+0.89

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Definitions:

Tranches

Portions or slices of debt or securities that are structured to divide risk or return in a way that is marketable to different investors.

Credit Risk

Credit risk refers to the possibility that a borrower will default on a loan by failing to make the necessary payments.

Seniority

The order of repayment in the event of a sale or bankruptcy, with higher seniority debts being repaid before those of lower seniority.

Mortgage Pass-through Agency

A financial entity that aggregates mortgage loans and creates pass-through securities representing interests in those loans.