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SOFE AFE Exam - Topic 2 Question 62 Discussion

Posted by Hubert on Sep 02, 2023 at 07:53 PM

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

Suggested Answer: D

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16 comments · newest first
AS
Ashton 11 months ago
Risk-adjusted discount rates are key in Present value calculations!
LE
Levi 11 months ago
Wait, are we sure about that? Sounds too simple.
GA
Garry 11 months ago
Totally agree, Present value is the way to go.
MA
Maurine 11 months ago
I thought it was Fair value?
VA
Vanesa 12 months ago
It's definitely the Present value technique!
CA
Carmela 12 months ago
I vaguely remember something about discount rate adjustments, but I don't think that's the main technique being asked here.
TE
Telma 12 months ago
This sounds like something we practiced in class. I feel like the answer might be present value, but I could be mixing it up with another concept.
NI
Nickole 1 year ago
I remember studying fair value measurements, but I can't recall if they specifically use a risk-adjusted discount rate.
LE
Leonard 1 year ago
I think the technique we're looking for is related to present value calculations, but I'm not entirely sure if it's specifically about cash flows.
AL
Alethea 1 year ago
The options mention fair value and discount rate adjustment, so I'll need to compare those to the details in the question.
EL
Elly 1 year ago
Okay, the key is to identify the technique that uses a risk-adjusted discount rate and contractual/promised/likely cash flows. I think I can work this out.
CA
Cassandra 1 year ago
Hmm, I'm not sure about the risk-adjusted discount rate part. I'll need to think through that carefully.
FR
Franklyn 1 year ago
This seems like a present value question, so I'll focus on the discount rate and cash flow details.
VE
Verlene 1 year ago
Okay, let's see here. The question is asking about protecting data on a stolen laptop, so I'm thinking the answer has to be something related to encryption or data protection. I'll go with B - full-disk encryption.
RO
Roselle 1 year ago
I'm a bit confused by the wording of the question. What exactly are they asking about the categories of LSAs that R3 will advertise? I'll need to re-read it a few times to make sure I understand.
HE
Hermila 1 year ago
Based on the options, it looks like we should use a custom mode VPC network and configure Cloud Router BGP routes for the dynamic routing. The active/passive routing should also help with the failover requirements.
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