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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.

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Svetlanka [38]

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Answer:

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