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Basic Question 0 of 2
Even if an asset-backed security is guaranteed by an insurer, it is still subject to credit risk because ______
II. the loss can be higher than the insured amount.
III. the insurer can be downgraded.
IV. the issuer of the security can be downgraded.
I. the insurer can default.
II. the loss can be higher than the insured amount.
III. the insurer can be downgraded.
IV. the issuer of the security can be downgraded.
User Contributed Comments 4
| User | Comment |
|---|---|
| danlan2 | Where can I get this? |
| mazen1967 | from this los |
| rhardin | Read the notes. |
| philerup | Issuer of security is not relevant. |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
explain how the value and price of a forward contract are determined at initiation, during the life of the contract, and at expiration
CFA® 2025 Level I Curriculum, Volume 5, Module 5.