Suppose that ABSs are created from portfolios of subprime mortgages with the following allocation of the principal to tranches: senior 80%, mezzanine 10%, and equity 10%. (The portfolios of subprime mortgages have the same default rates.) An ABS CDO is then created from the mezzanine tranches with the same allocation of principal. Losses on the mortgage portfolio prove to be 16%. What, as a percent of respective tranche principal, are losses on the mezzanine tranche of the ABS and ABS CDO. Select one alternative: 50% for ABS and 50% for ABS CDO 60% for ABS and 40% for ABS CDO 60% for ABS and 100% for ABSCDO 100% for ABS and 0% for ABSCDO