All of the following statements about targeted amortization class (TACs) CMOs are correct except A) they have transferred prepayment risk to companion tranches. B) in exchange for higher price risk, they generally offer a slightly higher interest rate. C) they are the most volatile of the tranches. D) they have high extension risk.

Leading guitar string producer wound up inc. has enjoyed a competitive advantage based on its proprietary coating that gives its strings a clearer sound and longer lifespan than uncoated strings. one of wound up's competitors, however, has recently developed a similar coating using less expensive ingredients, which allows it to charge a lower price than wound up for similar-quality strings. wound up's competitive advantage is in danger due to a. a lack of perceived value b. a lack of organization c. direct imitation and substitution d. resource immobility