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Which of the Following Best Describe the Difference Between a CMO

Question 1

Multiple Choice

Which of the following best describe the difference between a CMO and a CDO?


A) The CDO is a security the CMO is not.
B) The CMO can be tranched and the CDO cannot.
C) The CDO can have other asset classes other than mortgage loans.
D) A CMO will always be higher rated by S & P and Moody's than a CDO.

Correct Answer:

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