A RECENT DOWNTURN IN INTEREST RATES HAS CAUSED MANY OF OPPORTUNITY...

3. A recent downturn in interest rates has caused many of Opportunity's variable rate mortgages to be refinanced to 15- and 30-year fixed-rate mortgages. Opportunity has retained the business of most of its customers who have refinanced. ... A. In each of the scenarios provided, determine one effect on the risk objective of the bank's security portfolio. Evaluate each scenario in isolation from the others. Grading GuideAnswer for Question 10-A

Scenario Affect on bank's policies