SOFE Exam AFE Topic 2 Question 81 Discussion

Actual exam question for SOFE's AFE exam

Question #: 81
Topic #: 2

[All AFE Questions]

Revenue risk is defined as:

Athe general administrative costs of insurers include components that do not necessarily vary with the level of the equity markets

Bthe general administrative costs of investors include components that must necessarily vary with the level of the equity markets

Cthe particular administrative costs of insurers include components that must necessarily vary with the level of the equity markets

Dthe general administrative costs of investors include components that do not vary with the level of the equity markets

Show Suggested Answer

Suggested Answer: A

by Diane at Jul 13, 2024, 03:51 PM

Limited Time Offer

25%

Off

Get Premium AFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Alyce

3 days ago

Hmm, I'm not sure about this one. D seems plausible, as investor administrative costs may not necessarily vary with the equity markets.

upvoted 0 times

...

Ilda

4 days ago

I think the correct answer is C. The administrative costs of insurers, such as claims processing and customer service, are directly influenced by the level of the equity markets.

upvoted 0 times

...

Thurman

6 days ago

Hmm, that's an interesting perspective. I can see how both options could be valid depending on the context.

upvoted 0 times

...

Corrie

6 days ago

I disagree, I believe revenue risk is defined as the general administrative costs of insurers include components that do not necessarily vary with the level of the equity markets.

upvoted 0 times

...

Thurman

10 days ago

I think revenue risk is defined as the general administrative costs of investors include components that must necessarily vary with the level of the equity markets.

upvoted 0 times

...