WGU D076: Finance Skills for Managers (D076)|PA and
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1 of 459
Definition
Risk that results from factors at a particular firm and can be reduced
through diversification; also called firm- specific risk or nonsystematic
risk
Give this one a go later!
, Systematic Risk Risk Separation
Firm-specific Risk Idiosyncratic Risk
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2 of 459
Term
What allows an investor to determine which financial activities are
contributing to changes in the return on equity?
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Capital budgeting Central bank
DuPont framework Cross-sectional analysis
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3 of 459
Term
Jack is a personal financial advisor. He is with a new client, and the
client is asking him what he recommends for her portfolio. Jack knows
,that his firm's investment product performed well last year, but its
performance changes from year to year—some years it is better than
the market, and some years it is not. Also, the fee to invest in the
product is higher than the fee to invest in a market index fund. If Jack
sells his company's investment product, the customer's loyalty to the
company is doubled. Which actions should Jack take?
Give this one a go later!
Investments
A commercial bank position with the responsibility to assess the riskiness of lending
to borrowers and determining whether or not loans should be extended to
potential bank clients.
An area of finance that involves deciding which assets to invest in to create wealth
in the future.
Give a personal recommendation of the company's product while explaining
its performance relative to the market over the past several years.
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, 4 of 459
Term
Which of these measures is a component of return on equity?
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Net margin Gross margin
Liquidity ratios Nominal rate
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5 of 459
Term
Why is there always a cost for bringing funds into a business?
Give this one a go later!
Ratios can be used to determine An institution that accepts and pays
whether a firm is maximizing interest on deposits of money, as well
shareholder wealth. as extends loans
OA|Quiz Bank|Questions and Answers|100% Correct|Study
guide with complete solutions(2024-2025)
.
Correct 459
A+
Incorrect 00
Next steps
1 of 459
Definition
Risk that results from factors at a particular firm and can be reduced
through diversification; also called firm- specific risk or nonsystematic
risk
Give this one a go later!
, Systematic Risk Risk Separation
Firm-specific Risk Idiosyncratic Risk
Don't know?
2 of 459
Term
What allows an investor to determine which financial activities are
contributing to changes in the return on equity?
Give this one a go later!
Capital budgeting Central bank
DuPont framework Cross-sectional analysis
Don't know?
3 of 459
Term
Jack is a personal financial advisor. He is with a new client, and the
client is asking him what he recommends for her portfolio. Jack knows
,that his firm's investment product performed well last year, but its
performance changes from year to year—some years it is better than
the market, and some years it is not. Also, the fee to invest in the
product is higher than the fee to invest in a market index fund. If Jack
sells his company's investment product, the customer's loyalty to the
company is doubled. Which actions should Jack take?
Give this one a go later!
Investments
A commercial bank position with the responsibility to assess the riskiness of lending
to borrowers and determining whether or not loans should be extended to
potential bank clients.
An area of finance that involves deciding which assets to invest in to create wealth
in the future.
Give a personal recommendation of the company's product while explaining
its performance relative to the market over the past several years.
Don't know?
, 4 of 459
Term
Which of these measures is a component of return on equity?
Give this one a go later!
Net margin Gross margin
Liquidity ratios Nominal rate
Don't know?
5 of 459
Term
Why is there always a cost for bringing funds into a business?
Give this one a go later!
Ratios can be used to determine An institution that accepts and pays
whether a firm is maximizing interest on deposits of money, as well
shareholder wealth. as extends loans
