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
H. Cochran Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,3
MArishka [77]

Answer: If the required return is 11 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16.)

Explanation:

7 0
3 years ago
Read 2 more answers
When you get hired for a well-paying job, you will most likely view older used cars as complementary goods. normal goods. substi
valentinak56 [21]

When you get hired for a well-paying job, you will most likely view older used cars as<u> inferior goods.</u>

<h3><u /></h3><h3><u>What are inferior goods?</u></h3>

As consumer income rises, customer demand declines for a class of inferior goods. Low-cost alternatives to "normal products," or necessities like food and household supplies, are frequently found in inferior goods. For instance, when someone's wage is cut, they might buy cheaper, poorer things than they would otherwise. When their earnings increases again, they're more likely to buy regular things rather than cheap ones.

The word "inferior" refers to the product's price and perceived worth rather than its quality. The quality may occasionally be inferior to an equivalent standard good, but it may also occasionally be the same. In reality, there are occasions when the only distinctions between regular goods and equal substandard goods are the packaging and price of the goods.

Learn more about inferior goods with the help of the given link:

brainly.com/question/13377225?referrer=searchResults

#SPJ4

5 0
1 year ago
If investors believe that a stock is not providing a return that sufficiently compensates them for the risk of the stock, they w
jarptica [38.1K]

Answer:

<u>sell the stock which will drive it's expected return even lower.</u>

Explanation:

An investor wants to be compensated for the risk undertaken in the form of return. When investors believe that a stock is not providing sufficient return, such stocks would be sold by the investor.

When a stock is not performing well i.e it's current market price goes down, all the investors holding that stock will sell it , leading to it's market price going further down.

Since the market price goes further down, the expected return on such a stock would further decline.

3 0
3 years ago
_____ are expense items that do not become part of a final product. select one:
yarga [219]
Business services are expense items that do not become part of a final product.

Business services are intangible items such as IT, finance, management, shipping and more. These services support each other but do not become part of the final product. Installations and supplies are both part of the final product. Supplies to build and installations to put together.
4 0
3 years ago
Most amateur athletes eventually become professional athletes.<br> True<br> False
andrey2020 [161]

Answer:

False

Explanation:

6 0
3 years ago
Other questions:
  • 9. Gallagher is planning on
    12·1 answer
  • How can being a team player contribute to the salesperson’s success? To the success of the salesperson’s business?
    9·1 answer
  • Pharoah Company purchased a new machine on October 1, 2019, at a cost of $138,000. The company estimated that the machine will h
    13·1 answer
  • Sony introduces a new compact music player to compete with Apple's iPod that carries a two-year warranty against manufacturer's
    15·1 answer
  • Why is gasoline weighted more heavily than tomatoes in a calculation of the annual inflation rate in the United States
    6·2 answers
  • The marginal tax rate is equal to the:_______
    10·1 answer
  • Nick and Sheila Preston are married and have purchased a comprehensive major medical policy which covers them and their two sons
    10·1 answer
  • What does the regulation discussed in this section protect?
    9·1 answer
  • The size and cut of a diamond allows people looking at a ring to roughly estimate its cost and make a judgment about the wearer'
    12·1 answer
  • What would be the expected rate of return for each company, according to the capital asset pricing model (capm)?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!