Make a recommendation for a buy hold or sell strategy

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Reference no: EM131292812

Discussion

1) "Mortgage Securitization" Please respond to the following:

• From the e-Activity Part 1, critics have suggested that the complexity inherent in securitization can limit investors' ability to monitor risk. Evaluate the merits of this criticism, indicating your agreement or disagreement with the criticism. Provide support for your position.

• Mortgage-backed securities are believed to have contributed to the recent subprime mortgage crisis. Assess the fairness of this statement, providing a rationale for your reasoning and a recommendation for future use of this type of investment.

• Search the Internet or Strayer databases for current articles related to mortgage securitization. Be prepared to discuss.

• Go to Bloomberg's Website to review the current day's performance of the U.S. stock markets at https://www.bloomberg.com/. Be prepared to discuss.

2) "Stock Portfolio Risk" Please respond to the following:

• From the e-Activity Part 2, based on the current-day performance of the U.S. stock market, assess the level of risk to a financial institution holding stock within its portfolio. Make a recommendation for a buy, hold, or sell strategy for the next day's trading activity. Provide a rationale for your recommendation.

• Warren Buffet's strategy related for his stock portfolio over the past several decades was to buy U.S. "blue chip" companies, paying high dividends, and hold the position for the long term. Assess the effectiveness of using this strategy in today's marketplace, including the risk-reward relationship. Indicate your level of comfort with today's financial institutions adopting this same strategy. Provide support for your rationale.

Reference no: EM131292812

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