Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

NACVA Exam CVA Topic 1 Question 76 Discussion

Actual exam question for NACVA's CVA exam
Question #: 76
Topic #: 1
[All CVA Questions]

The state of the art in the twenty-first century involves incorporating one or all of the following elements into the discount rate to reflect risk EXCEPT:

Show Suggested Answer Hide Answer
Suggested Answer: D

by Portia at Nov 27, 2023, 03:21 AM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel
Huey
16 days ago
The correct answer is D. None of these. All the options presented are standard elements that should be incorporated into the discount rate to reflect risk.
upvoted 0 times
...
Helaine
24 days ago
I'm stumped on this one. Maybe I should have paid more attention in my finance class instead of doodling discount rate formulas on my notebook.
upvoted 0 times
...
Jesusita
26 days ago
Haha, I'm just going to guess C. The size effect, because who doesn't love a little size in their discount rate? Am I right or am I right?
upvoted 0 times
Carlee
1 days ago
C) An element reflecting the size effect
upvoted 0 times
...
Aileen
15 days ago
B) One or more coefficients modifying the basic equity risk premium based on industry or other characteristics that are expected to affect the degree of risk for the subject investment
upvoted 0 times
...
Cheryl
19 days ago
A) A basic equity risk premium over the risk --free rate selected as the base
upvoted 0 times
...
...
Elvera
1 months ago
I disagree, I think the answer is B. Modifying the equity risk premium based on industry characteristics is a key way to account for different levels of risk.
upvoted 0 times
Colton
8 days ago
User 2: I agree with Colton. A basic equity risk premium is a key element.
upvoted 0 times
...
Eva
26 days ago
User 1: I think the answer is A. A basic equity risk premium is essential.
upvoted 0 times
...
...
Jamika
2 months ago
I'm not sure, but I think D) None of these makes sense because the question is asking for an exception.
upvoted 0 times
...
Zachary
2 months ago
I'm pretty sure the correct answer is D. None of these. The question is asking for what SHOULD NOT be included in the discount rate, and all the other options seem to be standard elements that would be incorporated to reflect risk.
upvoted 0 times
Carylon
7 days ago
Yes, I think you're right. The other options all make sense in terms of incorporating risk into the discount rate.
upvoted 0 times
...
Corrina
8 days ago
I agree, D. None of these seems to be the correct answer.
upvoted 0 times
...
Alisha
9 days ago
Yes, I think you're right. The other options all make sense in terms of incorporating risk into the discount rate.
upvoted 0 times
...
Laurel
20 days ago
Definitely, risk is a key factor in determining the appropriate discount rate for an investment.
upvoted 0 times
...
Jesusita
21 days ago
It's always important to consider risk when calculating the discount rate.
upvoted 0 times
...
Adelina
21 days ago
I agree, D. None of these seems to be the correct answer.
upvoted 0 times
...
Louis
22 days ago
Yeah, I agree. A), B), and C) all make sense to include in the discount rate.
upvoted 0 times
...
Sonia
1 months ago
I think you're right, D) None of these seems to be the correct answer.
upvoted 0 times
...
...
Desmond
2 months ago
I agree with Georgiana, because all the other options involve incorporating elements to reflect risk.
upvoted 0 times
...
Georgiana
2 months ago
I think the answer is D) None of these.
upvoted 0 times
...

Save Cancel