1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kap26 [50]
3 years ago
13

Securitization, the process of forming new securities by bundling or slicing up groups of securities like mortgages and bonds, i

s
a. considered shady by legitimate financial institutions.
b. well understood by financial analysts and managers who engaged in it.
c. still only a minor portion of the modern financial system.
d. a way of reducing risk through diversification.
Business
1 answer:
maw [93]3 years ago
6 0

Answer:

The correct answer is letter "A": a way of reducing risk through diversification.

Explanation:

Securitization is the process of converting an asset or group of assets into a marketable security. Often, the securitized assets are divided into different layers tailored to the<em> investment risk tolerance</em> of different types of investors. The process of securitization creates liquidity in the marketplace for the assets being securitized.

You might be interested in
If lynx corp. estimates its bad debt to be 1% of net credit sales, what will be the balance in the allowance for doubtful accoun
hodyreva [135]
<span>Using the numbers as written in the corresponding question, you would subtract 20,000 from 100,000 to get your amount of net profit. The 100k and the 20k are original sales figures, with the 100 being total sales and the 20 being sales returns. After subtracting the total returns you are left with net profit of 80k. You would then multiply the 80k by 1% to get your amount for bad debts. The total would be $800 of bad debt expenses (debts)..</span>
4 0
3 years ago
You can buy commercial paper of a major u.S. Corporation for 495000 $ the paper has face value of 500000 $ and in 45 days from m
BartSMP [9]

Answer:

Discount yield is 8%

Bond equivalent yield is 8.19%

Explanation:

The discount yield on the commercial paper is calculated as:

(($500,000 - $495,000)/$500,000 ) x (360/45)

= ($5,000/$500,000 x (360/45)

= 0.01 x 8

= 0.08

= 8%

And bond equivalent yield is calculated as:

(($500,000 - $495,000)/$495,000) x (365/45)

= ($5,000/$495,000) x 8.11

= 0.0101 x 8.11

= 0.0819

= 8.19%

7 0
4 years ago
After the required beginning date (RBD), what is the amount of penalty that applies to a required minimum distribution (RMD) fro
xenn [34]

Answer:

The penalty for an IRA that is insufficient in amount is half of the undsitributed amount.

Cheers

5 0
4 years ago
A grant to an inventor to make, use, or sell an invention is called
olya-2409 [2.1K]
A permit gives authorization to allow someone to do something.

A license allows the use of something or to allow an activity.

A loan is to borrow (money or property)

A patent is the right granted by government to an inventor to sell, manufacture, or use an invention for a certain number of years.

Which means the answer would be D. Patent
3 0
4 years ago
Cage company had income of $350 million and average invested assets of $2,000 million. its return on assets (roa) is
Strike441 [17]
Cage company had income of $350 million and average invested assets of $2,000 million. its return on assets (roa) is

The formula of return on assets is net income divided by average assets.
Given that the net income is $350 million, average asset is $2000

The answer is 0.0005
7 0
4 years ago
Read 2 more answers
Other questions:
  • Reba dixon is a fifth-grade schoolteacher who earned a salary of $38,000 in 2017. she is 45 years old and has been divorced for
    15·1 answer
  • As an hr manager, you would most likely use a strategy map to ________.
    13·2 answers
  • Based on employment statistics for 2010, which ranks the number of jobs in these careers from least to greatest? Crop Production
    15·1 answer
  • Here is the income statement for Tamarisk, Inc. TAMARISK, INC. Income Statement For the Year Ended December 31, 2020 Sales reven
    14·1 answer
  • ________ can be categorized as popularity, relevancy, and user satisfaction. a. Mobile search SEO b. Ranking factors c. SERP d.
    9·1 answer
  • Emily is a real estate salesperson in Albany. How will Emily know if the residential market in Albany is depreciating...?
    15·1 answer
  • For spring break, you have to decide between going on a cruise with friends and going on a service trip with Alternative Spring
    13·1 answer
  • Over the past four years, the annual percentage returns on large-company stocks were 15, 7, 4, and 18%. For the same time period
    11·1 answer
  • What is the length of the product mix?
    15·1 answer
  • Question 4
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!