D076 /
Finance
/ /
Skills
/ /
for
/ /
Managers
/ /
WGU Exam Questions With Correct Answers
/ // // // // //
Real //Return //- //verified //answer(s)-
✔✔Rate //of //growth //in //purchasing //power //of //goods //and //services
Holding //Period //Return //- //verified //answer(s)-
✔✔Return //over //the //entire //period //that //an //investor //owns //a //financial //security
Beta //- //verified //answer(s)-
✔✔A /
/measure /
/of /
/the /
/volatility, /
/or /
/systematic //risk, //of //a //security //or //a //portfolio //in //comparison //to //the //market //as //a //whole.
standard //deviation //- //verified //answer(s)-✔✔Used //to //measure //the //total //risk //of //securities
annuity //due //- //verified //answer(s)-
✔✔an //annuity //whose //payments //occur //at //the //beginning //of //each //period, //consecutively
, Par //Bond //- //verified //answer(s)-
✔✔When //the //bond's //coupon //rate //equals //the //market //yield; //
Bonds //are //typically //issued //near //par //value
Pi //- //verified //answer(s)-
✔✔Profitability /
/index. //At //1, //the //PI //means //a //internal //return //rate //equal //to //the //cost //of //capital
Irr //- //verified //answer(s)-
✔✔Internal /
/rate /
/of /
/return /
/(IRR) /
/is //
a/
/discount //rate //at //which //the //net //present //value //(NPV) //of //an //investment //is //equal //to //zero.
If /
/the /
/IRR /
/is //higher //than //the //cost //of //borrowing //to //fund //the //investment, //the //investment //should //be
//profitable. //Always //shown //as //percentage.
Net //Present //Value //(NPV) //- //verified //answer(s)-
✔✔A /
/method /
/of /
/ranking /
/investment /
/proposals //using //the //NPV, //which //is //equal //to //the //present //value //of //the //project's //free //cash
//flows /
/discounted /
/at //the //cost //of //capital. //Shown //as //dollar //amount.. //At //$0 //it //means //it //will //neither //add //nor
//subtract //value.
Finance
/ /
Skills
/ /
for
/ /
Managers
/ /
WGU Exam Questions With Correct Answers
/ // // // // //
Real //Return //- //verified //answer(s)-
✔✔Rate //of //growth //in //purchasing //power //of //goods //and //services
Holding //Period //Return //- //verified //answer(s)-
✔✔Return //over //the //entire //period //that //an //investor //owns //a //financial //security
Beta //- //verified //answer(s)-
✔✔A /
/measure /
/of /
/the /
/volatility, /
/or /
/systematic //risk, //of //a //security //or //a //portfolio //in //comparison //to //the //market //as //a //whole.
standard //deviation //- //verified //answer(s)-✔✔Used //to //measure //the //total //risk //of //securities
annuity //due //- //verified //answer(s)-
✔✔an //annuity //whose //payments //occur //at //the //beginning //of //each //period, //consecutively
, Par //Bond //- //verified //answer(s)-
✔✔When //the //bond's //coupon //rate //equals //the //market //yield; //
Bonds //are //typically //issued //near //par //value
Pi //- //verified //answer(s)-
✔✔Profitability /
/index. //At //1, //the //PI //means //a //internal //return //rate //equal //to //the //cost //of //capital
Irr //- //verified //answer(s)-
✔✔Internal /
/rate /
/of /
/return /
/(IRR) /
/is //
a/
/discount //rate //at //which //the //net //present //value //(NPV) //of //an //investment //is //equal //to //zero.
If /
/the /
/IRR /
/is //higher //than //the //cost //of //borrowing //to //fund //the //investment, //the //investment //should //be
//profitable. //Always //shown //as //percentage.
Net //Present //Value //(NPV) //- //verified //answer(s)-
✔✔A /
/method /
/of /
/ranking /
/investment /
/proposals //using //the //NPV, //which //is //equal //to //the //present //value //of //the //project's //free //cash
//flows /
/discounted /
/at //the //cost //of //capital. //Shown //as //dollar //amount.. //At //$0 //it //means //it //will //neither //add //nor
//subtract //value.
