Online Access Free AFE Exam Questions

Permanent stockholders' equity represents an outside claim (from the permanent stockholders' perspective) on the net assets of a subsidiary.

• A.False
• B.True

The amount that currently would be required to replace the service capacity of an asset is called:

• A.Income approach
• B.Risk approach
• C.Cost approach
• D.Market approach

It usually is acceptable to use the subsidiary's statements if the difference in fiscal periods is:

• A.not more than 4 months
• B.not more than 3 months
• C.not more than 5months
• D.not more than 2 months

In which of the following, Internal entity experience or information from published sources concerning recent trends in socioeconomic factors affecting claim payments:

• A.All of the above
• B.judicial decisions assessing liability
• C.judicial decisions regarding noneconomic damages
• D.general inflation rates

Which of the following is NOT of equity market sensitivities that are usually considered in dynamic hedging?

• A.theta
• B.Vega
• C.Delta
• D.alpha