A few things on Sample 2 that are not clicking–any input would be appreciated. Ethics: 5. In response to Natali’s supervisor’s question regarding the firm’s policies on research objectivity, Natali’s best response would be: B. both policies 1 and 2 are inconsistent with the current Standards and require changes. My question: Why is statement 2 inconsistent? The extended answer desribes the standard and it is very similar to statement 2. Is statement 2 inconsistent simply because it shuold say you cannot threaten to change reports instead of what it currently says, which is “threaten negative reports”? Fixed Income: 13. Didn’t get to record the answer–can anyone please provide it? 17. The pension fund manager’s statement about the credit risk of nonagenecy MBS is most likely: B: incorrect, because credit enhancement can be used to achieve any desired credit rating. The answer goes on to say that all nonagency securitiesare credit enhanced and the amount of credit enhancement needed is determined relative to a specific rating desired." My question: Is this really implying that nonagency debt has the same credit rating as agency debt? I thought fannie and freddie were much safer because of the implicit government guarantee. Basically it seems like the question is trying to say that with credit enhancement you eliminate credit risk.