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SOFE Exam AFE Topic 1 Question 92 Discussion

Actual exam question for SOFE's AFE exam
Question #: 92
Topic #: 1
[All AFE Questions]

To avoid double counting or omitting the effects of risks factors what should reflect assumptions that are consistent with those inherent in the cash flows?

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Suggested Answer: C

Contribute your Thoughts:

Albina
2 months ago
Wait, wait, wait... Are we sure we're not just talking about a fancy calculator here? I mean, 'cause if that's the case, I'm going with E) The one with the most buttons!
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Boris
1 months ago
E) The one with the most buttons!
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Beckie
1 months ago
D) Inflation effect
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Verda
1 months ago
C) Discount rates
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Felicidad
1 months ago
B) Nominal flows
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Josue
1 months ago
A) Economic flow
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Pearline
3 months ago
Hah, this question's a real brain-teaser! But I reckon C) Discount rates is the way to go. Gotta make sure those discount rates are on point, or you'll be in a world of trouble!
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Nieves
2 months ago
Definitely, discount rates help ensure the cash flows are accurately represented.
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Johnna
2 months ago
Yeah, discount rates play a key role in avoiding double counting and considering risk factors.
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Muriel
2 months ago
I agree, discount rates are crucial for reflecting assumptions in cash flows.
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Lisha
3 months ago
I see your point, but I think discount rates play a bigger role in avoiding double counting.
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Rodrigo
3 months ago
But what about inflation effect? Shouldn't that also be considered?
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Jesusita
3 months ago
I agree with Lisha, discount rates should reflect assumptions to avoid double counting.
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Lisha
3 months ago
I think the answer is C) Discount rates.
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Twanna
3 months ago
Oof, this one's a toughie. But I'm gonna go with B) Nominal flows. Gotta keep those numbers nice and clean, you know?
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Val
3 months ago
D) Inflation effect sounds like the right choice to me. You gotta consider the impact of inflation on those cash flows, am I right?
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Mariko
3 months ago
I think the answer is C) Discount rates. The discount rates used should be consistent with the assumptions inherent in the cash flows to properly account for the effects of risk factors.
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Chantay
2 months ago
Exactly, it's important to consider all aspects when evaluating cash flows.
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Julene
2 months ago
That makes sense, we don't want to double count or overlook any risk factors.
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Wade
2 months ago
So, we need to make sure the discount rates are consistent with the inherent risks.
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Glynda
2 months ago
I agree, the discount rates should reflect the assumptions in the cash flows.
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Loreta
3 months ago
Inflation effect should also be taken into account for accurate cash flow analysis.
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Christoper
3 months ago
I think nominal flows play a role in ensuring consistency with risk factors.
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Lonna
3 months ago
It's important to consider the economic flow when determining the discount rates.
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Mayra
3 months ago
I agree, the discount rates should reflect the assumptions in the cash flows.
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