Which of the Following Securities Is Likely to Have the Most

question 32

Multiple Choice

Which of the following securities is likely to have the most credit risk?

• A) Commercial paper
• B) A high yield (junk) bond
• C) Collateralized mortgage bond consisting of 50% sub-prime mortgages
• D) There is not enough information to decide between A, B and C.

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Definitions:

Happiness

A state of well-being and contentment characterized by emotions ranging from contentment to intense joy.

Dispositional Optimism

The extent to which a person typically adopts an optimistic or pessimistic approach to dealing with life’s challenges.

Achieve

To successfully reach a desired goal or outcome through effort, skill, or courage.

Social Anxiety

The fear of social situations that involve interaction with other people, often driven by a fear of being judged or embarrassed.