Which of the following statements are FALSE as the correlation between mortgage defaults increases? (a) Equity tranches are almost certain to incur losses (b) Senior tranches become more likely to incur losses (c) The expected number of defaults increases (d) Equity tranches are unaffected Select one alternative: (a), (c) and (d) (a) and (b) (a), (b) and (c) (b) and (c)