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SOFE Exam AFE Topic 2 Question 69 Discussion

Actual exam question for SOFE's AFE exam
Question #: 69
Topic #: 2
[All AFE Questions]

A mismatch in the timing of asset maturities relative to policy benefits requiring either reinvestment or disinvestment by the insurer at uncertain future interest rates is known as:

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Suggested Answer: D

Contribute your Thoughts:

Meaghan
19 days ago
A) Reliable Mismatch Risk? Really? That's not even a thing. The answer has to be B) Maturity Mismatch Risk. Come on, folks, let's not make this harder than it needs to be.
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Lemuel
20 days ago
I was leaning towards C) Change Mismatch Risk, but after reading the options carefully, B) Maturity Mismatch Risk is clearly the correct answer. Gotta love these tricky insurance terminology questions!
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Bambi
26 days ago
I'm not sure, but I think it could also be A) Reliable Mismatch Risk because it's important for insurers to manage this risk effectively.
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Alaine
27 days ago
Definitely B) Maturity Mismatch Risk. This is a classic textbook definition of the risk arising from the timing difference between asset maturities and policy benefit payments.
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Jade
5 days ago
Reinvestment or disinvestment decisions can have a big impact.
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Audria
11 days ago
It's important for insurers to manage this risk effectively.
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Leoma
12 days ago
I agree, it's definitely B) Maturity Mismatch Risk.
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Lynette
1 months ago
I agree with Lashandra. It makes sense because it's about the timing of asset maturities.
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Lashandra
1 months ago
I think the answer is B) Maturity Mismatch Risk.
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a