CDOs can be valued easily and are priced on the basis of their annualized yields.

Name: CDOs can be valued easily and are priced on the basis of their annualized yields.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

CDOs can be complex and difficult to value, which contributed to their role in the 2008 financial crisis. Their pricing can depend on various factors such as credit quality, interest rates, and market conditions, and their yields may not accurately reflect their true value.

CDOs Can Be Valued Easily and Are Priced on the Basis