WGU D775 OA GUIDE COMPLETE SOLUTIONS
◉ Finance.
Answer: Managing assets, liabilities, and planning for future growth.
◉ Personal Finance.
Answer: Managing individual or household money (budgeting,
saving, investing).
◉ Public Finance.
Answer: Government money management, including taxes,
spending, and debt.
◉ Business Finance / Corporate Finance.
Answer: Managing company money, including investments, funding,
and risk.
◉ Capital Budgeting.
Answer: Deciding which projects a company should invest in.
◉ Cost of Capital.
,Answer: The return a company must earn to cover the cost of
funding a project.
◉ Financial Ratios.
Answer: Comparisons of financial data to measure performance.
◉ Common Stock.
Answer: Ownership in a company with voting rights and potential
dividends.
◉ Preferred Stock.
Answer: Ownership with fixed dividends and priority in asset
claims, usually no voting rights.
◉ Capital Appreciation.
Answer: Increase in an asset's value over time.
◉ Bonds.
Answer: Loans made to companies or governments that must be
repaid with interest.
◉ Coupon Rate.
Answer: The interest rate a bond pays to investors.
,◉ Maturity.
Answer: The date a bond's final payment is due.
◉ Corporate Bonds.
Answer: Bonds issued by companies, usually higher risk and higher
return than government bonds.
◉ Municipal Bonds.
Answer: Local or state government bonds, often tax-exempt.
◉ Treasury Bonds.
Answer: U.S. federal government bonds, considered very low risk.
◉ Financial Derivatives.
Answer: Contracts whose value is based on another asset's price.
◉ Options.
Answer: Contracts giving the right (not obligation) to buy/sell at a
set price before a date.
◉ Futures.
, Answer: Contracts requiring buying/selling at a set price on a set
date.
◉ Investment Funds.
Answer: Pools of money from many investors invested in a portfolio.
◉ Mutual Funds.
Answer: Investment funds priced daily based on net asset value
(NAV).
◉ Exchange-Traded Funds (ETFs).
Answer: Investment funds traded like stocks.
◉ Hedge Funds.
Answer: High-risk funds for wealthy or institutional investors.
◉ Pension Funds.
Answer: Retirement savings invested for long-term growth.
◉ Public Markets.
Answer: Securities traded openly on exchanges.
◉ Finance.
Answer: Managing assets, liabilities, and planning for future growth.
◉ Personal Finance.
Answer: Managing individual or household money (budgeting,
saving, investing).
◉ Public Finance.
Answer: Government money management, including taxes,
spending, and debt.
◉ Business Finance / Corporate Finance.
Answer: Managing company money, including investments, funding,
and risk.
◉ Capital Budgeting.
Answer: Deciding which projects a company should invest in.
◉ Cost of Capital.
,Answer: The return a company must earn to cover the cost of
funding a project.
◉ Financial Ratios.
Answer: Comparisons of financial data to measure performance.
◉ Common Stock.
Answer: Ownership in a company with voting rights and potential
dividends.
◉ Preferred Stock.
Answer: Ownership with fixed dividends and priority in asset
claims, usually no voting rights.
◉ Capital Appreciation.
Answer: Increase in an asset's value over time.
◉ Bonds.
Answer: Loans made to companies or governments that must be
repaid with interest.
◉ Coupon Rate.
Answer: The interest rate a bond pays to investors.
,◉ Maturity.
Answer: The date a bond's final payment is due.
◉ Corporate Bonds.
Answer: Bonds issued by companies, usually higher risk and higher
return than government bonds.
◉ Municipal Bonds.
Answer: Local or state government bonds, often tax-exempt.
◉ Treasury Bonds.
Answer: U.S. federal government bonds, considered very low risk.
◉ Financial Derivatives.
Answer: Contracts whose value is based on another asset's price.
◉ Options.
Answer: Contracts giving the right (not obligation) to buy/sell at a
set price before a date.
◉ Futures.
, Answer: Contracts requiring buying/selling at a set price on a set
date.
◉ Investment Funds.
Answer: Pools of money from many investors invested in a portfolio.
◉ Mutual Funds.
Answer: Investment funds priced daily based on net asset value
(NAV).
◉ Exchange-Traded Funds (ETFs).
Answer: Investment funds traded like stocks.
◉ Hedge Funds.
Answer: High-risk funds for wealthy or institutional investors.
◉ Pension Funds.
Answer: Retirement savings invested for long-term growth.
◉ Public Markets.
Answer: Securities traded openly on exchanges.
