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A Collateralized Debt Obligation (Or CDO)

Question 46

Multiple Choice

A collateralized debt obligation (or CDO)


A) Is generally riskier than a single debt of an equal value
B) Sells for a lower price than re-sales of individual mortgages that comprise them
C) Is sold in the primary financial market
D) Is a financial instrument that obscures the underlying risks of the mortgages that comprise them
E) Is always a bad financial investment

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