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NEW QUESTION: 1
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. II and III
B. I only
C. I and II
D. I, II, and III
Answer: C