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SOFE AFE Exam - Topic 1 Question 41 Discussion

Actual exam question for SOFE's AFE exam
Question #: 41
Topic #: 1
[All AFE Questions]

The risk that the obligation will not be fulfilled and affects the value at which the liability is transferred is known as:

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Suggested Answer: B

by Blair at Jun 19, 2022, 03:45 PM

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Alberta
4 months ago
I think performance risk could fit too, though!
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Shannan
4 months ago
Nonperformance risk affects liability value transfer.
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Herminia
4 months ago
Wait, is it really called nonperformance risk? Sounds odd.
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Laine
4 months ago
Totally agree, that's the right term.
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Leandro
4 months ago
It's definitely nonperformance risk!
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Delfina
5 months ago
Relocation risk doesn't seem to fit at all. I'm leaning towards nonperformance risk as well.
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Herschel
5 months ago
Hypothetical risk sounds familiar, but I don't think it's the right term for this situation.
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Raylene
5 months ago
I remember a question about nonperformance risk from our practice exam. It feels like the right choice here.
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Merilyn
5 months ago
I think this might be related to performance risk, but I'm not entirely sure.
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Buffy
5 months ago
Okay, I think I've got a strategy here. I'll start by comparing the details in the two images, then use that to evaluate the options and select the best one.
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Fletcher
5 months ago
I'm feeling confident about this one. The key information is that the service desk is provided by an internal service provider, so they would be responsible for managing the performance against their own service targets. I'm going to go with option B.
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Elenor
5 months ago
Sampling sounds like it could be about layers or photons too, but I'm leaning towards B since it fits better with what we talked about in class.
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Kanisha
5 months ago
I remember practicing something similar where we talked about fixtures. I feel like D is probably the right answer.
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