Your broker calls to offer you the investment opportunity of a lifetime, the chance to invest in mortgage-backed securities. the broker explains that these securities are entitled to the principal and interest payments received from a pool of residential mortgages. list some of the questions you would ask your broker that would in assessing the risk of this investment opportunity?

There's a list of important question to be do done:

1. A complete list of credit qualification of each member of the mortgage backed security (MBS) is needed: it is very useful because allow you to know the quality of the product, as in 2008 crisis the issuers of this kind of products put bad credit rate mortgages with good rate.

2. Who is the issuer of the MBS: it helps to determine the quality of the product, because studying the balance sheet is possible to know how healthy the company is

3. Is also important to know the issuer of the mortgage, it means Wich commercial Bank is issuing this kind of products

4-is the product been traded in stock exchange or it OTC ( over the counter). If it is traded OTC is lesser regulated than any stock exchange

by knowing conditionality

explanation:

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.