Question

Who typically invests in MBSs?

Answer #1

Mortgage backed securities are asset backed securities that are secured by mortgages.The typical investors in mortgage backed securities are -

**1.Institutional Investors-** These are group of
high net worth individuals who invest in MBSs.

**2.Corporate Investors-** These are corporate
entities which invest in MBSs.

**3.Individual Investors -** These are generally
traditional retail investors who wants to take exposure in
MBSs.

The minimum investment required to invest in mortgage backed securities is $ 25000. There are also some modified version of mortgage backed securities like Collateralised mortgage obligations that require just a minimum investment of $ 5000.Exposure in Mortgage Backed securities can also be taken in Exchange Traded Funds which invests in These MBSs.

What is the duration gap for an investor with a year horizon who
invests in a bond with a duration of 10?

Lynn Londergan, investment analyst for
the Tempel and Bull Company, typically invests in high beta stocks.
Lynn has invested in Xezer, Cable II, International Four, and
Gamma, with betas of 2.2, 1.6, 2.4, and 1.8, respectively.
Assuming that Lynn has invested in these stocks by equal market
values, what exactly is the beta for this portfolio? (2 pts)
If the risk-free rate of return is 7% and the required return
on the market portfolio is 12%, what is the required...

11- What is the duration gap for an investor with a year horizon
who invests in a bond with a duration of 10?
2
0
-2
None of answers
13- A fixedbond has a Macaulay Duration of 10. Which of the
following could possibly be the band's Modified Duration?
12
None of answers
11
7
14- A income portfolio is invested equally among three zero
coupon bonds with maturities of 3 years, years, and 10 years. What
is the estimated...

Which of these represents an example of citizens who would
not typically be counted as unemployed?
when your fourteen-year-old cousin loses her summer job in
September
when your economics professor loses his job and gets a new one
at McDonald's
when your neighbor has been out of work for so long that he
decides to stay at home and write a novel
all of the above
none of the above

A person invests 3001 today, then invests 3002 in 3 years with
an account that has an expected annual return of 13.6% compounded
each quarter. How much money will be in the account in 4 years?

12. Explain how the possible profit and loss possibilities arise
for an individual who invests in a:
a.
A Call Option
i. Be sure to explain what a Call Option is.
ii. Be sure to incorporate the cost of the Call Option in your
analysis.
b. A Put Option
i. Be sure to explain what a Put Option is.
ii. Be sure to incorporate the cost of the Put Option in your
analysis.
(Basically pick a random number got the...

What accounts for the fact that during good weather there are
typically enough taxis for everyone who wants one, but during
snowstorms there typically aren’t enough?

Foxtrot invests $440 today into an account that earns 14% simple
interest. Golf invests $440 today into an account that earns 8.8%
compound interest. What is the balance of the account with a
greater value in 14 years?

Sally Invests Part 1:
Assume that 1 year nominal interest rates on U.S. government
securities are 3 percent, and 1 year nominal interest rates on U.K
government securities are 5 percent. Consider an investor named
Sally who has $1,000 in USD to invest in U.K. government
securities for 1 year. Assume that the spot rate today is $1.550
USD per GBP. How many GBP would Sally receive today for her $1000
when she converts it to GBP? (Note: GBP...

Rare autosomal dominant diseases are ________.
typically not passed on to offspring
typically more severe in homozygous recessive individuals than
in homozygous dominant individuals
typically similar in severity in homozygous dominant and
heterozygous individuals
typically more severe in homozygous dominant individuals
typically less severe in homozygous dominant individuals than
heterozygous individuals

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 9 minutes ago

asked 18 minutes ago

asked 21 minutes ago

asked 23 minutes ago

asked 26 minutes ago

asked 28 minutes ago

asked 28 minutes ago

asked 29 minutes ago

asked 40 minutes ago

asked 42 minutes ago

asked 42 minutes ago