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SOFE AFE Exam - Topic 1 Question 21 Discussion

Actual exam question for SOFE's AFE exam
Question #: 21
Topic #: 1
[All AFE Questions]

A lower net retention level typically would translate into a higher v\variability of reserves.

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Suggested Answer: B

by Rosio at May 06, 2022, 03:54 AM

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Golda
7 months ago
Wait, are we sure about that? Sounds a bit off to me.
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Lorita
7 months ago
Agreed, higher variability is expected with lower retention levels.
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Quentin
7 months ago
Surprised to see this! I thought retention wouldn't affect reserves that much.
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Ashton
7 months ago
I disagree, I think it depends on other factors too.
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Silva
7 months ago
That's definitely true! Lower retention means more variability.
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Allene
8 months ago
I recall something about variability increasing with lower retention levels, so I’m leaning towards true, but I need to double-check my notes.
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Taryn
8 months ago
I’m a bit confused here. I thought lower retention would stabilize reserves, but maybe I mixed that up with something else?
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Cherri
8 months ago
This sounds familiar; I feel like we practiced a question like this where lower retention led to higher risk.
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Stanford
8 months ago
I think I remember that lower net retention means more variability, but I'm not entirely sure if it's always true.
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Han
8 months ago
Hmm, I'm a bit confused by the wording here. I'll need to re-read the question a few times to make sure I understand exactly what they're asking for.
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Brent
8 months ago
Option C about requiring a secret for web flow seems important for security, but I'm not sure if that's the right choice here. I'll need to review the context more closely.
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Portia
8 months ago
This is a tricky one. I'm a bit confused about the difference between "User1" and "bsmith@fabrikam.com" - are they the same person or different users? I'll need to double-check the details to make sure I understand who the external users are.
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Kristine
8 months ago
Hmm, this seems straightforward. SAML is definitely the industry standard for single sign-on, so I think the answer is True.
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