CDOs Are Divided in Tranches

CDOs are divided in tranches

A) that provide investors with securities with varying degrees of credit risk.
B) and each tranch is given a different level of seniority in terms of its claims on the underlying pool.
C) and none of the tranches is risky.
D) and equity tranch is very low risk.
E) that provide investors with securities with varying degrees of credit risk, and each tranch is given a different level of seniority in terms of its claims on the underlying pool.