Question

Risk attributes of collateralized mortgage obligations differ based on tranches. True or False TrueFalse

Risk attributes of collateralized mortgage obligations differ based on tranches.

True or False

TrueFalse

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ANswer

True

Tranche is a portion of investment or securities invested in the different type of risk market to decrease the risk, and it has different risk associated with each market so that the risk attributes of collateralized mortgage obligations differ based on tranches.

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