An Issue with Mark-To-Market Accounting When There Is a Highly

Multiple Choice

An issue with mark-to-market accounting when there is a highly depressed market is that:

A) Depressed values could be only temporary, portfolios are likely to re-gain value, and thus current unrealized losses are overstated
B) Depressed values could be not only temporary, portfolios are likely to re-gain value, and thus current losses are overstated
C) Depressed values could be only temporary, portfolios are not likely to re-gain value, and thus current losses are understated
D) Depressed values could be only temporary, portfolios are not likely to re-gain value, and thus current non-realized gains are overstated
E) Depressed values could be only temporary, portfolios are likely to re-gain value, and thus current non-realized losses are understated