Which of the following describes "base correlation"
A. The most basic correlation measure possible
B. A correlation used to value all tranches
C. The correlation implied from market data
D. The correlation for valuing a tranche with an attachment point of 0%
D
The base correlation for X% is the correlation that would be used to value a tranche which provides protection against the first X% of losses on a portfolio. The tranche considered has an attachment point of 0% and a detachment point of X%.
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________ means to have one set of moral values to use under certain circumstances and another different set of values to follow under different circumstances
A) Attribution B) Compartmentalization C) Collaboration D) Combination E) Rationalization
The Dodd-Frank Act reduces the amount of funds authorized for TARP and requires that TARP funds repaid by financial institutions be used for government deficit reduction
a. True b. False Indicate whether the statement is true or false