Mortgage pools serve as a very effective hedge against risk, insulating their holders against fluctuations in the housing market.

Name: Mortgage pools serve as a very effective hedge against risk, insulating their holders against fluctuations in the housing market.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Mortgage pools, while diversifying risk among multiple loans, do not insulate holders completely against fluctuations in the housing market; they are still subject to risks like defaults and changes in interest rates.

Mortgage Pools Serve as a Very Effective Hedge Against Risk