In a Three-Class Sequential Pay CMO,if We Consider Class B

question 39

Multiple Choice

In a three-class sequential pay CMO,if we consider Class B holders as having average prepayment risk,then Class A holders have ________ prepayment risk and Class C holders have ________ prepayment risk.

• A)above average; below average
• B)below average; below average
• C)below average; above average
• D)above average; above average

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Definitions:

P-Value

The likelihood of getting findings from tests that are at least as extreme as what was observed, assuming the correctness of the null hypothesis.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect, serving as the default assumption that is tested against an alternative hypothesis.

Type I Error

The incorrect rejection of a true null hypothesis, often referred to as a "false positive."

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists among the variables being tested.