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When a Mortgage Is Used as Collateral for the Issuance

question 9

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When a mortgage is used as collateral for the issuance of a mortgage-backed security (MBS) ,the underlying mortgage is said to be "securitized." As of 2008,approximately what percentage of residential mortgage loans in the U.S.was being used as collateral for the issuance of MBS?


Definitions:

Null Hypothesis

A statement used in statistics that proposes there is no effect or no difference, and it is the hypothesis that researchers aim to test against.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Null Hypothesis

An assumption in hypothesis testing that there is no significant difference or effect.

.05

Often signifies the alpha level used in hypothesis testing that represents a 5% risk of concluding that a difference exists when there is no actual difference.

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