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American Bankers Association CTFA Exam - Topic 4 Question 78 Discussion

Actual exam question for American Bankers Association's CTFA exam
Question #: 78
Topic #: 4
[All CTFA Questions]

What technique uses a risk-adjusted discount rate and contractual, promised, or most likely cash flows?

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Suggested Answer: D

by Yolande at Sep 18, 2024, 02:52 PM

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Ronald
3 months ago
Risk-adjusted discount rate? Sounds complicated!
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Leota
3 months ago
Wait, are we sure it's not Fair Value?
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Francesco
3 months ago
Fair value seems more accurate to me.
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Noble
4 months ago
I agree, Present Value is the way to go.
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Daron
4 months ago
It's definitely Present Value!
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Jutta
4 months ago
Present value sounds right to me, especially with the mention of risk-adjusted discount rates.
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Vesta
4 months ago
I feel like discount rate adjustment could be a possibility, but it doesn't quite fit with cash flows as much as the others.
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Rodolfo
4 months ago
I remember practicing a question similar to this, and I think fair value was mentioned in that context.
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Lettie
5 months ago
I think the technique might be related to present value, but I'm not entirely sure about the specifics of cash flows.
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Cristal
5 months ago
I'm a little confused by this one. The wording is kind of tricky. I'm leaning towards D, discount rate adjustment, but I'm not 100% confident. Guess I'll have to make an educated guess on this one.
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Maybelle
5 months ago
Okay, let me walk through this step-by-step. The question is asking about a technique that uses a risk-adjusted discount rate and contractual/promised cash flows. That sounds like the present value method to me, so I'm going to go with C.
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Kristine
5 months ago
Hmm, I'm not totally sure about this one. I'm debating between B, fair value, and C, present value. Both of those seem to fit the description in the question. I'll have to think it through a bit more.
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Carline
5 months ago
This one seems straightforward - I think the answer is C, present value. That technique uses a risk-adjusted discount rate and contractual or promised cash flows.
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Annette
5 months ago
I feel pretty confident about this one. The "Create Rule" button is designed to help admins manage false positives, so the rule it creates should be more targeted than just stopping all EPM injection.
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Kaycee
1 year ago
Woohoo, time to put on my finance hat! C) Present value for the win, baby!
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Cordelia
1 year ago
Hmm, I'll have to go with D) Discount rate adjustment. Can't beat that risk-adjusted discount rate!
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Gayla
1 year ago
User 3: D) Discount rate adjustment is definitely the best choice for risk-adjusted cash flows.
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Essie
1 year ago
User 2: I'm going with B) Fair value, it seems like the most accurate option.
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Alpha
1 year ago
I think C) Present value is the way to go.
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Valentine
1 year ago
This is a tough one, but I'm gonna go with C) Present value. Sounds like the most comprehensive approach.
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Nelida
1 year ago
I'm not sure, but I'll go with A) Asset/Liability weighted.
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Sylvie
1 year ago
I think it's B) Fair value, but I can see why you chose C) Present value.
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Beatriz
1 year ago
I agree, C) Present value seems like the most appropriate choice here.
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Cassie
1 year ago
I'm not sure, but I think it could also be B) Fair value because that takes into account the risk-adjusted discount rate.
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Rima
1 year ago
I agree with Adelle, because it makes sense to use present value for risk-adjusted discount rate.
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Adelle
1 year ago
I think the answer is C) Present value.
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Jennie
1 year ago
B) Fair value is my pick. Gotta love those risk-adjusted cash flows!
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Samuel
1 year ago
D) Discount rate adjustment seems like the way to go. Adjusting the discount rate to account for risk is key here.
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Ira
1 year ago
I think the correct answer is C) Present value. It aligns with the description of using a risk-adjusted discount rate and cash flows.
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Valda
1 year ago
Discount rate adjustment doesn't fit the description given.
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Oliva
1 year ago
Asset/Liability weighted and Fair value are not the right choices.
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Angella
1 year ago
Present value is definitely the technique that uses a risk-adjusted discount rate and cash flows.
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Ruthann
1 year ago
I agree, C) Present value makes sense in this context.
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Ettie
1 year ago
I agree, the correct answer is C) Present value.
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Eladia
1 year ago
Yes, it's definitely the most appropriate choice for that scenario.
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