Multiple Choice
Which of the following were fundamental flaws in the decisions made by participants in the securitized mortgage market that contributed to its boom through 2007?
I.Leverage creates value.
II.Lower costs create value.
III.Diversification creates value.
IV.Lower cost of capital creates value.
A) I and II only.
B) I and III only.
C) II and III only.
D) III and IV only.
Correct Answer:
Verified
Correct Answer:
Verified
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