WGU D076 OBJECTIVE ASSESSMENT FINAL EXAM 2 ,MOST
RECENT EXAM 2025/2026 ACTUAL COMPLETE REAL EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ / NEWEST EXAM / JUST RELEASED!!
A company that produces soap, shampoo, lotion, and other
personal care products has recently taken a hit due to a
competitor's new product line. The company decides to reduce
wages for its labor force to save money while the company
focuses on building up its reputation again, but the company's
labor force goes on strike to protest the pay cuts. What type of
risk does the strike represent? - ANSWER-Idiosyncratic risk -
Idiosyncratic risk is the same as firmspecific risk. Since the
strike will most likely affect only this firm, it is a firmspecific
risk.
Which description below correctly identifies one type of price
risk? - ANSWER-
Operating risk—depends on the effect of the firm's operating
decisions on its
operating
costs -
What is the name for the process of "spreading" money over
many different
assets? - ANSWER-
Diversification
,What is default risk? - ANSWER-A firm-specific risk that comes
from the probability of a loss resulting from a borrower's failure
to repay a contractual obligation -
Which type of interest rate includes interest on interest in
addition to interest on the principal? - ANSWER-Compound
interest - The compound interest is known as interests on
interests and the principal instead of only on the principal.
What is the rate at which the average price level of particular
goods and services in an economy increases over a period of
time? - ANSWER-Inflation rate
You signed an apartment contract today. You are going to pay
$1,500 at the beginning of each month for the next 12 months,
starting today. What type of cash flows is this contract? -
ANSWER-An annuity due - An annuity due is a series of equal
payments made at the beginning of consecutive periods.
What is the term for the return over the entire period that an
investor owns a
financial security? - ANSWER-Holding
period return
What is used to measure total risk? - ANSWER-Standard
deviation - Standard
deviation is used to measure the total risk of
securities.
, What is the term for the risk that changes in interest rates will
impact the value of a bond? - ANSWER-Interest rate risk - This
is the risk that changes in interest rates will impact the value of
a bond.
A company currently has a ratio of 1.5 but hopes to improve the
ratio to 2 to align more with the industry benchmark. To achieve
this goal, costs were cut in production through an investment
in efficient equipment, and the company achieved a higher
profit margin. If this continues, you are certain that the firm will
achieve its goal in two years. What is this an example of? –
ANSWER-Progress measurement - You are comparing the
company's ratio to the goal and checking how the company is
progressing toward the goal.
For what purpose are market ratios used? - ANSWER-To
evaluate the current share price of a public firm's stock - Market
ratios are used to evaluate whether the current share of a
public firm's stock is correctly priced.
You are considering starting a new business to sell Widgets in
your hometown. You can import the Widgets at a low cost, and
you hope to be able to sell them for significantly more. Which
ratio can help you calculate how much profit you will earn from
the sale of each Widget? (Assume you are only considering the
cost of the Widget, not any other operating costs.) - ANSWER-
Gross margin - Gross margin tells you the percent of sales that
become gross profit. The rest of the money earned from sales
is used for the production of goods.
RECENT EXAM 2025/2026 ACTUAL COMPLETE REAL EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ / NEWEST EXAM / JUST RELEASED!!
A company that produces soap, shampoo, lotion, and other
personal care products has recently taken a hit due to a
competitor's new product line. The company decides to reduce
wages for its labor force to save money while the company
focuses on building up its reputation again, but the company's
labor force goes on strike to protest the pay cuts. What type of
risk does the strike represent? - ANSWER-Idiosyncratic risk -
Idiosyncratic risk is the same as firmspecific risk. Since the
strike will most likely affect only this firm, it is a firmspecific
risk.
Which description below correctly identifies one type of price
risk? - ANSWER-
Operating risk—depends on the effect of the firm's operating
decisions on its
operating
costs -
What is the name for the process of "spreading" money over
many different
assets? - ANSWER-
Diversification
,What is default risk? - ANSWER-A firm-specific risk that comes
from the probability of a loss resulting from a borrower's failure
to repay a contractual obligation -
Which type of interest rate includes interest on interest in
addition to interest on the principal? - ANSWER-Compound
interest - The compound interest is known as interests on
interests and the principal instead of only on the principal.
What is the rate at which the average price level of particular
goods and services in an economy increases over a period of
time? - ANSWER-Inflation rate
You signed an apartment contract today. You are going to pay
$1,500 at the beginning of each month for the next 12 months,
starting today. What type of cash flows is this contract? -
ANSWER-An annuity due - An annuity due is a series of equal
payments made at the beginning of consecutive periods.
What is the term for the return over the entire period that an
investor owns a
financial security? - ANSWER-Holding
period return
What is used to measure total risk? - ANSWER-Standard
deviation - Standard
deviation is used to measure the total risk of
securities.
, What is the term for the risk that changes in interest rates will
impact the value of a bond? - ANSWER-Interest rate risk - This
is the risk that changes in interest rates will impact the value of
a bond.
A company currently has a ratio of 1.5 but hopes to improve the
ratio to 2 to align more with the industry benchmark. To achieve
this goal, costs were cut in production through an investment
in efficient equipment, and the company achieved a higher
profit margin. If this continues, you are certain that the firm will
achieve its goal in two years. What is this an example of? –
ANSWER-Progress measurement - You are comparing the
company's ratio to the goal and checking how the company is
progressing toward the goal.
For what purpose are market ratios used? - ANSWER-To
evaluate the current share price of a public firm's stock - Market
ratios are used to evaluate whether the current share of a
public firm's stock is correctly priced.
You are considering starting a new business to sell Widgets in
your hometown. You can import the Widgets at a low cost, and
you hope to be able to sell them for significantly more. Which
ratio can help you calculate how much profit you will earn from
the sale of each Widget? (Assume you are only considering the
cost of the Widget, not any other operating costs.) - ANSWER-
Gross margin - Gross margin tells you the percent of sales that
become gross profit. The rest of the money earned from sales
is used for the production of goods.
