Mutual funds that invest in mortgage-backed pass-through securities are exposed to which of the following risks and costs?

(One or more than one options may be correct. Partial mark will be awarded for not including all correct options in your answer. If the wrong option(s) is(are) chosen as part of your answer, your answer will be marked as wrong.)

Select one or more:

a.Credit risk

b.Liquidity risk

c.Interest rate risk

d.Capital adequacy requirements

e.Prepayment risk