Which of the Following Is Not True? Choose One)

Which of the following is not true? choose one)

A) The bonus structure at banks is liable to lead to short term horizons for decision making.
B) A portfolio of BBB tranches created from mortgages has a loss probability distribution similar to a portfolio of BBB bonds.
C) The term 'agency costs' describes the situation where the incentives of two parties in a business relationship are not perfectly aligned.
D) Correlations tend to increase in stressed market conditions.