Question: Question a, b (a) Why do you think the increase in house prices during the 2000-2007 period is referred to as a bubble? (20 marks)

Question a, b Question a, b (a) Why do you think the increase in house

(a) Why do you think the increase in house prices during the 2000-2007 period is referred to as a bubble? (20 marks) (b) All tranches in an ABS have the same risk exposure. Discuss critically if this statement is true or false. (10 marks)

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