Which of the Following Is NOT True of an R

question 84

Multiple Choice

Which of the following is NOT true of an R class CMO issue?

• A)It is treated as "garbage class."
• B)It is a high-risk investment class.
• C)It gives the investor the rights to the over-collateralization and reinvestment income on the cash flows in the CMO trust.
• D)Returns increase when interest rates increase.
• E)It has a positive duration.

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Definitions:

Cournot Duopolists

Firms in a duopoly (a market dominated by two firms) that determine their output levels simultaneously, under the assumption that the other will not change theirs.

Imports

Goods or services brought into one country from another for the purpose of trade or sale.

Cournot Duopolists

A market structure in which two companies assume the other's output to be constant when determining their optimal production levels.

Total Costs

The total of all expenses involved in creating goods or services, encompassing both constant and fluctuating costs.