NACVA Exam CVA Topic 1 Question 89 Discussion

Actual exam question for NACVA's CVA exam

Question #: 89
Topic #: 1

[All CVA Questions]

The discount rate is a market-driven rate. It represents the expected yield rate-or rate of return-necessary to induce:

AInvestors to commit available funds to the subject investment, given its level of risk

BYield rate

CDividends

DInvestment yield

Show Suggested Answer

Suggested Answer: C

by Eleonore at Jun 23, 2024, 04:57 PM

Limited Time Offer

25%

Off

Get Premium CVA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Galen

8 days ago

The discount rate? More like the 'discourage me from investing' rate, am I right? Let's just go with A and call it a day.

upvoted 0 times

...

Elouise

16 days ago

Wait, is the discount rate the same as the 'rate of return'? I'm going to have to consult my magic 8-ball on this one.

upvoted 0 times

Karima

4 days ago

A) Investors to commit available funds to the subject investment, given its level of risk

upvoted 0 times

...

1 months ago

Hmm, I'm not sure if B, C, or D are just synonyms for the discount rate. I'll have to think this one through carefully.

upvoted 0 times

Floyd

6 hours ago

A) Investors to commit available funds to the subject investment, given its level of risk

upvoted 0 times

...

Lon

1 months ago

The discount rate represents the expected yield rate necessary to attract investors, so A is the correct answer. Easy peasy!

upvoted 0 times

Corrie

17 days ago

I think A is the correct answer because the discount rate is what attracts investors.

upvoted 0 times

...

Alise

1 months ago

I think the answer is A) Investors to commit available funds to the subject investment, given its level of risk.

upvoted 0 times

...