Please just answer part C only

Show all steps of your work clearly to ensure partial credit

11. (10 points) Explain the role of the following factors in the upswing of the financial cycle that preceded the global financial crisis: a. (4 points) The implicit state guarantee for too-big-to-fail institutions. b. (3 points) The assumption that MBSs bundled together in CDOs were not highly correlated. c. (3 points) Capital regulation based on risk-weighted assets