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3 years ago

Check all true statements regarding CMBS:

Business

2 answers:

Stolb23 [73]3 years ago

5 0

Answer: A and D only

Explanation:

CMBS Loan are also referred to as a Conduit Loan, this is a type of real estate loan usually commercial, which is secured by a first-position mortgage on a commercial property. These loans are usually packaged, and sold by a Conduit Lender, commercial banks, investment banks, and syndicates of banks.

Loans in a CMBS are always bigger so they are less in a CMBS deal. Sometimes it’s onlyone loan in a Single Asset (SA) CMBS deal

Prepayments are discouraged in CMBS through defeasance,prepayment penalties or yield maintenance fees.

Goshia [24]3 years ago

3 0

Answer:

a.CMBS have less exposure to prepayment risk than RMBS

d. The number of commercial mortgages in a CMBS deal are usually lower than the number of residential mortgage in a RMBS deal

Explanation:

Commercial Mortgage-Backed Securities (CMBS) as the name implies are mortgage backed securities that are secured with commercial mortgages while Residential Mortgage-Backed Securities (RMBS) are mortgage backed securities secured by residential property.

a) CMBS are based on mortgages which usually have a fixed term contract in place meaning that prepayment is less of a thing with CMBS than with RMBS so the former does indeed have a less exposure to prepayment risk than the latter.

d) This is indeed true because both packages have to look appealing to investors but can only use different amounts to reach the minimum threshold. This is because Commercial Mortgages pay more than Residential Mortgages so more RMBS have to be pulled together to form an attractive investment as opposed to CMBS. This is why the number in CMBS are usually less than that of RMBS.

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Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 7 % 0 % Market 12.2 31 A 11.0 20 a. C

Gennadij [26K]

Answer:

The Sharpe ratios for the market portfolio and portfolio A is 0.1677 and 0.2 respectively

Explanation:

The computation of the Sharpe ratio is shown below:

= (Expected Rate of Return - Risk-free rate of return) ÷ (Standard Deviation)

For Market portfolio, it would be

= (12.2% - 7%) ÷ (31%)

= 5.2% ÷ 31%

= 0.1677

For portfolio A, it would be

= (11% - 7%) ÷ (20%)

= 4% ÷ 20%

= 0.20

Simply we apply the Sharpe ratio formula in which the risk-free rate of return is deducted from the expected return and the same is divided by the Standard Deviation

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3 years ago

An indium-gallium-arsenide-nitrogen alloy developed at Sandia National Laboratory is said to have potential uses in electricity-

IceJOKER [234]

Answer:

Rate of return 9.1864%

Explanation:

Scenario description:

using the new alloy, will extend the life of a telecommunication satellite thus, more years for the porject life.

We need to calcualte the rate at which the extra revenues in years 11 through 15 equalize the extra cost of 870,000 at F0

each extra revenue will be considered a lump sum, we will add them and check the present value.

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 450,000 500,000 550,000 600,000 650,000

time 11.00 12.00 13.00 14.00 15.00

rate : ??

As this is a complex equation the human way to solve this is with trial an error.

Also, we could solve this with a financial calcualtor or excel.

We are going to use the latter.

you will do as follow:

from A1 to A5 write the maturity values

from B1 to B5 write the time

on c1 write 0.1 this will be the first rate we will build the formulas and then, excel will solve for the answer:

on D1 you will write:

=A1/power(1+$C$1,B1)

Thisformula calculates the presnet value of the additional revenues

then drag this up to D5

on D6 =sum(D1:D5) this add them

Then select d6 goo to goal seek and define it as 870,000 changing the cell C1

This will give you: 0.091863796 = 9.1864% this is the rate ofr eturn for impelenting the alloy

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3 years ago

Ursula is allowed to set her own schedules for playtime and for studying. In return, Ursula's mother insists that her daughter k

mr_godi [17]

Ursula's mom is most likely an authoritative parent.

Explanation:

Authoritative parenthood is a childhood style of strong sensitivity and heavy demands. Authoritative parents respond with high expectations to the children's emotional needs. They set boundaries and enforce borders very systematically.

Oppressive and oppressive parents are strict and want their children a lot. Conservative and moist dominant parents, yet conservative and cold oppressive parents.

Authoritative parents discuss their children's laws and explain them. Authoritarian parents require only one path contact.

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3 years ago

Advertising refers to any paid form of personal communication about an organization, product, service, or idea by an identified

Zanzabum

Answer:

<em>any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor.</em>

Explanation:

Yes, it is very true that in advertising of a product or something, we have to pay and it is not a personal communication as well, it just advertises and promotes a particular thing which it is paid for and it also provide services to its customers who post their advertisement, and it is platform where new ideas are been generated by the sponsor of that particular advertisement.

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3 years ago

If an investment is 70 percent likely to return 10 percent per year and 30 percent likely to return 15 percent a year, then its

Bogdan [553]

If an investment is 70 percent likely to return 10 percent per year an 30 percent likely to return -15percent a year, then its average expected rate of return is 11.5%.

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3 years ago