Class a Investors Are Sometimes Repaid with an Accelerated Pattern

question 21

Multiple Choice

Class A investors are sometimes repaid with an accelerated pattern of cash flows and are sometimes referred to as:

• A)Accelerated tranches
• B)Quick pay tranches
• C)Tranche residuals
• D)Fast pay tranches

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Definitions:

Variance

A measure of the dispersion or spread of a set of data points around their mean value; in finance, it's often used to measure volatility.

Portfolio Variance

A measure of the dispersion of returns of a portfolio's assets, indicating the degree of investment risk.

Portfolio Standard Deviation

A measure of the dispersion of returns within an investment portfolio, representing the risk associated with the portfolio's returns.

Portfolio Variance

A measure of the dispersion of returns of a portfolio, representing the risk associated with the portfolio.