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9. How has the firm managed to increase its return and risk profile without raising any red flags? a) By considerably increasing its leverage. b)

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9. How has the firm managed to increase its return and risk profile without raising any red flags? a) By considerably increasing its leverage. b) By hedging everything with futures. c) By hedging everything with options. d) By hedging everything with forwards. 10.What would have happened to the firm, if the assets in the "warehouse" (i.e. before bundling, tranching and reselling) were to lose 25%? a) The loss would be greater than the market capitalization of the entire firm. b) The loss would be greater than previous profits. c) The loss would also be 25%. d) The loss would be 98%. 11. How were the assets (fixed income MBS) sold in the movie? a) Online b) Organized stock exchange c) Phone (over the counter)

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