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Which of the Following Is True of Collateralized Debt Obligations

Question 106

Multiple Choice

Which of the following is true of collateralized debt obligations (CDOs) ?


A) They are pools of assets that have zero default risk.
B) They give investors rights to shares of streams of money from pools of mortgages.
C) They offer very low returns and they are safe.
D) Their values are easily established.

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