With collateralized debt obligations (CDOs)buyers are purchasing _________ slices,and buyers of mortgage-backed securities (MBSs)purchase ___________ slices.

Question

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With collateralized debt obligations (CDOs), buyers are purchasing unequal slices because the underlying assets are not homogeneous, and therefore, different slices may have different risk and return profiles. On the other hand, buyers of mortgage-backed securities (MBSs) purchase equal slices because the underlying assets are homogeneous (mortgages), and therefore, all slices have the same risk and return profiles.

With Collateralized Debt Obligations (CDOs)buyers Are Purchasing _________ Slices,and Buyers