WGU D775 EXAM QUESTIONS AND ANSWERS
What is the time orientation of business finance? - correct
answer Future projections and planning
Why use financial ratios? - correct answer Evaluate and
improve business performance
What is the primary objective of business finance? - correct
answer Maximizing shareholder value
What is the purpose of corporate bonds? - correct answer
Finance operations and expansions
, WGU D775
What are financial derivatives based on? - correct answer
Underlying assets, indexes, or rates
What is a future contract? - correct answer Standardized
contract to buy/sell at future date/price
How do hedge funds differ from mutual funds? - correct
answer Use diverse strategies; sophisticated investors only
How do funds diversify? - correct answer Pool money to invest
in a variety of assets
What do junk bonds offer? - correct answer Higher risk &
higher returns
What is a key advantage of ETFs? - correct answer Trade all day
like stocks
What is an example of a dealer market? - correct answer
NASDAQ