Summer Special Limited Time 65% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: exc65

examout.co

Which of the following statements regarding CDO-squared is correct?

I. CDO-squared use other CDOs and CMOs as collateral.

II. Risk assessment of CDO-squared is almost impossible due to their complexity.

III. CDO-squared have lower credit risk than CMOs but higher than CDOs.

A.

I only

B.

I and II

C.

II and III

D.

I, II, and III

To ensure good risk management which of the following should be true about the CRO role and function?

A.

The CRO should receive compensation that is directly determined by the profit of the trading desk.

B.

The CRO should report to the CEO or the Board of Directors.

C.

The CRO should not be involved with the setting of risk limits.

D.

To ensure efficient flow of information the CRO should not be independent of business units.