American Bankers Association CTFA Exam - Topic 6 Question 57 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 57
Topic #: 6

[All CTFA Questions]

The discount rate at which two projects have identical is referred to as Fisher's rate of intersection.

APresent values

BNet present values

CIRRs

DProfitability indexes

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Suggested Answer: B

by Sylvie at Dec 27, 2023, 04:25 AM

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Rashad

8 months ago

Nope, definitely NPV!

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Frederick

8 months ago

I thought it was just a fancy term for discount rates.

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Ivory

8 months ago

Wait, are we sure it's not about IRRs?

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Beth

8 months ago

Totally agree, it's all about the NPV!

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Tegan

8 months ago

Fisher's rate of intersection relates to net present values.

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Karan

9 months ago

I thought Fisher's rate was linked to profitability indexes, but now I'm second-guessing myself.

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Tommy

9 months ago

I feel like this might be about present values, but I can't recall the exact definition.

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Cassie

9 months ago

I remember practicing a question about net present values and how they can be equal at a certain discount rate. Maybe that's what this is about?

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Rikki

9 months ago

I think Fisher's rate of intersection relates to IRRs, but I'm not completely sure if that's the right term.

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The wording of this question is a bit tricky. I'm not 100% sure if it's asking about present values, NPVs, IRRs, or profitability indexes. I'll need to read it over a few times to make sure I understand what they're looking for.

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Aron

9 months ago

Okay, let me see... Fisher's rate of intersection is the discount rate at which two projects have the same present value, right? I think I've got this, but I'll double-check my notes just to be sure.

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Felix

9 months ago

This seems like a straightforward question about the concept of Fisher's rate of intersection. I'm pretty confident I can work through this.

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Diego

9 months ago

Hmm, I'm a bit unsure about this one. I know Fisher's rate has to do with comparing projects, but I can't quite recall the exact definition. I'll have to think this through carefully.

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Matilda

9 months ago

This seems straightforward - I think the answer is to add a Cache-Control entry with value private to the metadata of the object I don't want cached anymore.

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Gerri

9 months ago

This question is tricky, but I think I can figure it out. The key is understanding how Simplified Disaster Recovery works with the deduplication storage folder.

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Nu

10 months ago

Okay, let's see. An enterprise service bus is supposed to handle reliable message delivery, message routing, and message queuing, right? I think I know the answer, but I'll double-check my notes just to be sure.

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Noel

1 year ago

I thought it was Fisher's rate of intersection for two fishermen arguing over who caught the bigger fish. Silly me!

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Phil

1 year ago

A) Present values, of course! Fisher's rate is all about finding the discount rate where the present values are equal.

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Kathrine

1 year ago

C) IRRs can also help determine the rate of intersection between two projects.

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Roslyn

1 year ago

B) Net present values are also important to consider when comparing two projects.

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Dorthy

1 year ago

A) Present values, of course! Fisher's rate is all about finding the discount rate where the present values are equal.

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Carissa

1 year ago

Hmm, I'm not too sure about this one. The options are a bit tricky, but I'll go with D) Profitability indexes just to be different.

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Aliza

1 year ago

I agree with you, I also think it's C) IRRs.

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Kasandra

1 year ago

I'm going with B) Net present values.

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Willie

1 year ago

I think the correct answer is C) IRRs.

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Tommy

1 year ago

B) Net present values sounds right to me. If the NPVs are the same, then the discount rates must be equal.

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Elouise

1 year ago

B) Net present values are a commonly used metric in project evaluation.

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Diane

1 year ago

C) IRRs can also be used to evaluate the potential return of an investment.

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Osvaldo

1 year ago

B) Yes, Net present values are crucial for determining the profitability of a project.

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Whitney

1 year ago

A) Present values are also important to consider when comparing projects.

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Josue

1 year ago

D) Profitability indexes can provide additional insight into the overall profitability of a project.

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Tarra

1 year ago

C) IRRs can also be used to determine the discount rate at which two projects have identical values.

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Raylene

1 year ago

A) Present values are also important to consider when comparing projects.

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Annita

1 year ago

I'm not sure, but I think it might also be B) Net present values.

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Ronald

1 year ago

I agree with Diane, because Fisher's rate of intersection is related to IRRs.

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Diane

1 year ago

I think the answer is C) IRRs.

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Felicia

1 year ago

Easy, it's C) IRRs. I remember learning about Fisher's rate of intersection being the discount rate where two projects have the same internal rate of return.

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