SOFE Exam AFE Topic 3 Question 79 Discussion

Actual exam question for SOFE's AFE exam

Question #: 79
Topic #: 3

The evaluation and subsequent purchase or sale of investments is based on the judgment of the entity's investment and finance committees.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: A

by Ruthann at Jul 04, 2024, 05:44 AM

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Nickolas

5 months ago

Can we get a definition of 'entity' here? Is this a business, a government, or what? I'm going with True, but I'm not 100% sure.

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Billy

5 months ago

Haha, investment and finance committees? More like the CEO and their trusty Magic 8-Ball, am I right? Anyway, I'll go with False, just to be on the safe side.

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Marge

5 months ago

Haha, you might be onto something there! I'll stick with False too.

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Elbert

5 months ago

True

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Carli

5 months ago

B) False. I think it's important to consider both the judgment of committees and data analysis when evaluating investments.

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Alpha

6 months ago

Hold up, are we talking about investment decisions or financial committee decisions? This needs more clarity!

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Raymon

6 months ago

Hmm, I don't know, the question seems a bit vague. What if the entity doesn't have those committees? I'll go with False just to be safe.

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Alysa

4 months ago

True, it must be based on those committees.

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Nelida

4 months ago

I agree, False seems like a safe choice.

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Ula

5 months ago

I'm not sure, but I'll go with False.

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Mila

5 months ago

I think it's True.

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Kara

6 months ago

A) True. I agree with Carmen that the committees' judgment is crucial in making investment decisions.

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Vilma

6 months ago

B) False. I believe that the evaluation of investments should be based on data and analysis, not just the judgment of committees.

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Sabrina

6 months ago

I'm pretty sure the answer is True. The investment and finance committees are responsible for making those decisions, right?

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Karol

6 months ago

That's right. The investment and finance committees play a crucial role in making those decisions.

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Magdalene

6 months ago

Yes, you're correct. The evaluation and purchase/sale of investments are indeed based on the judgment of the entity's investment and finance committees.

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Carmen

6 months ago

A) True. I think the evaluation of investments should be based on the judgment of the entity's investment and finance committees.

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