Free SOFE AFE Exam Actual Questions

The questions for AFE were last updated On Nov 3, 2024

Question No. 1

An instrument that grants the holder the right but not the obligation to buy the underlying asset at a specified strike price is known as:

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Correct Answer: B

Question No. 2

What is largely systematic that is; all insured risks are strongly affected by certain common influences, like developments in the capital markets?

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Correct Answer: C

Question No. 3

Fair quoted techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs.

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Correct Answer: B

Question No. 4

A Company's investments are admitted assets properly valued which support the reserves and liabilities, including required capital and surplus. Many jurisdictions permit companies to make some investments that do not meet all of the strict regulatory requirements. These additional investments are often referred to as basket assets. Which of the following is/are true for Basket assets?

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Correct Answer: A, B

Question No. 5

What encompasses investment income and gains and losses, as well as custody of investment and recordkeeping?

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Correct Answer: C