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RES 334 Week 2 DQ 2

RES 334 Week 2 DQ 2

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RES 334 Week 2 DQ 2 -

Risk Allocation

In 250-300 words, What is the difference between interest rate risk and default risk? How do combinations of terms in ARMs affect the allocation of risk between borrowers and lenders? Is this a suitable way to allocate risk?

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