Question: a. Explain how credit risk transferred through securitization. (10 marks) b. Critically discuss the principle that in an ABS all tranches have the same risk

a. Explain how credit risk transferred through securitization. (10 marks) b. Critically discuss the principle that in an ABS all tranches have the same risk exposure. (10 marks) c. Discuss the main differences between hedge funds and mutual funds (10 marks) d. Explain the importance of backtesting in VaR. (10 marks) e. Why the increase in house prices during 2000-2007 period is referred to as a bubble

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