Why would investors buy securities that contain bad commercial real estate loans? A. Inaccurate rating agency judgements may cause investors to buy securities containing bad loans. B. Investors might buy securities containing bad loans if they are risk "enthusiasts." C. Investors might buy securities containing bad loans if securities are misrepresented. D. All of the above. E. Only A and C are plausible.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
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Why would investors buy securities that contain bad commercial real estate loans?
○ A. Inaccurate rating agency judgements may cause investors to buy securities containing bad loans.
B. Investors might buy securities containing bad loans if they are risk "enthusiasts."
C. Investors might buy securities containing bad loans if securities are misrepresented.
D. All of the above.
O E. Only A and C are plausible.
Transcribed Image Text:Why would investors buy securities that contain bad commercial real estate loans? ○ A. Inaccurate rating agency judgements may cause investors to buy securities containing bad loans. B. Investors might buy securities containing bad loans if they are risk "enthusiasts." C. Investors might buy securities containing bad loans if securities are misrepresented. D. All of the above. O E. Only A and C are plausible.
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