WGU C214: Financial Management |OA|
Objective Assessment Graded A+
Correct
Incorrect
, 2 of 55
Term
Define Efficient Frontier
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Minimizes risk for a given level of
Maximizes return for any level of risk
return
Maximizes expected return for a
Balances risk and return equally
given level of risk
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3 of 55
Term
What is the intrinsic value of a stock under efficient market hypothesis?
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The intrinsic value of stock is the
The intrinsic value of stock is the
present value of the stock's after
book value of the stock.
tax net cash flows.
, The intrinsic value of stock is the The intrinsic value of stock is the
market value of the stock. historical cost of the stock.
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4 of 55
Definition
Cash flow that is generated from investments in long term assets.
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Cash Flow from Investing Cash Flow from Financing Activities
Activities (CFI) (CFF)
Cash Flow from Operating Activities
Cash Flow from Sales Activities
(CFO)
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5 of 55
Term
Where would a risk-taking investor fall on the efficient frontier?
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, 50% Stocks, 50% Bonds 100% Stocks
100% Bonds 100% Mutual Funds
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6 of 55
Term
Define IRR?
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Reports the company's revenues and expenses during a particular period of time.
Also reports net income or net loss. Always prepared first.
Another method used for long term investment decisions is the internal rate of
return (IRR) method. This method is considered inferior to NPV. Internal Rate
of Return (IRR) is defined as the discount rate that results in a Zero Net Present
Value.
More than being a type of bonds, convertibility is a feature that may be added to
any bond type. Convertibility refers to the ability to convert a bond into equity
securities, usually common stock. It gives the investor the right to trade each bond
for a set number of shares of common stock whenever the investor chooses
Objective Assessment Graded A+
Correct
Incorrect
, 2 of 55
Term
Define Efficient Frontier
Give this one a try later!
Minimizes risk for a given level of
Maximizes return for any level of risk
return
Maximizes expected return for a
Balances risk and return equally
given level of risk
Don't know?
3 of 55
Term
What is the intrinsic value of a stock under efficient market hypothesis?
Give this one a try later!
The intrinsic value of stock is the
The intrinsic value of stock is the
present value of the stock's after
book value of the stock.
tax net cash flows.
, The intrinsic value of stock is the The intrinsic value of stock is the
market value of the stock. historical cost of the stock.
Don't know?
4 of 55
Definition
Cash flow that is generated from investments in long term assets.
Give this one a try later!
Cash Flow from Investing Cash Flow from Financing Activities
Activities (CFI) (CFF)
Cash Flow from Operating Activities
Cash Flow from Sales Activities
(CFO)
Don't know?
5 of 55
Term
Where would a risk-taking investor fall on the efficient frontier?
Give this one a try later!
, 50% Stocks, 50% Bonds 100% Stocks
100% Bonds 100% Mutual Funds
Don't know?
6 of 55
Term
Define IRR?
Give this one a try later!
Reports the company's revenues and expenses during a particular period of time.
Also reports net income or net loss. Always prepared first.
Another method used for long term investment decisions is the internal rate of
return (IRR) method. This method is considered inferior to NPV. Internal Rate
of Return (IRR) is defined as the discount rate that results in a Zero Net Present
Value.
More than being a type of bonds, convertibility is a feature that may be added to
any bond type. Convertibility refers to the ability to convert a bond into equity
securities, usually common stock. It gives the investor the right to trade each bond
for a set number of shares of common stock whenever the investor chooses
