Which of the following are characteristics that would make mortgage-backed securities (MBSs) inappropriate for less...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Which of the following are characteristics that would make mortgage-backed securities (MBSs) inappropriate for less sophisticated, conservative investors? I. The maturity of MBSs is quite variable and difficult to determine. II. Due to their convexity, the realized total return on MBSs is often more dependent on interest rate levels than other bonds of similar maturity. III. Due to a possible unfamiliarity with prepayment concepts, investors may not be able to evaluate the true yield on MBS issues. IV. Many MBS issues are not quoted widely and are difficult to monitor.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.