WGU D486 GOVERNANCE, RISK, AND
COMPLIANCE 70DF ACTUAL EXAM PAPER
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ COBIT Framework.
Answer: Separates governance from management, strives to aid IT
governance by helping organizations generate the maximum added value to
the business via its IT investments, while mitigating risk and optimizing
resources.
◍ Control Risk.
Answer: Probability of loss arising from the tendency of internal control
systems to lose their effectiveness over time, and this expose the assets they
were instituted to protect.
◍ StandardizationFlexibilityFocusEvaluation(Ratios themselves are not useful,
but through comparisons such as trend analysis, cross-sectional analysis, and
progress measurement, they become meaningful.).
Answer: Why are ratios useful?
◍ Internal Control (COSO Definition).
Answer: A process, affected by an entity's BOD, management and other
personnel, designed to provide reasonable assurance regarding the
achievement of objectives in effectiveness of operations, reliability of
financial reporting, and compliance.
◍ IRR:is easy to interpret,considers time value of money, anddoes not require
use of required rate of return..
Answer: What are the advantages of IRR?
,◍ Availability.
Answer: Ensuring timely and reliable access to and use of information.
◍ Market-to-book Ratio (M/B Ratio).
Answer: A market ratio found by market value of equity divided by book
value of equity.
◍ IT Governance.
Answer: The process that ensures the effective and efficient use of IT in
enabling an organization to achieve its goals.
◍ Leading indicators change before the economy changes and include yield
curve and stock market return..
Answer: What are leading indicators?
◍ The project has the internal rate of return equal to the cost of capital..
Answer: You are considering a project that has a profitability index of 1.
What does this mean?
◍ Malware.
Answer: Software designed to infiltrate, damage, or obtain information from
a computer system without consent.
◍ Governance.
Answer: Ensuring that organizational activities are aligned in a way that
supports the organizations business goals (monitoring of the organization).
◍ It includes all cash flows that occur during the life of the project.It considers
the time value of money.It incorporates the cost of capital—or in other
words, the required rate of return on the project..
Answer: What is the ideal evaluation method for capital investment?
◍ Par Bond.
Answer: A bond whose price is exactly equal to its par value.
◍ Inegrity.
Answer: Guarding against improper modification or destruction, and
includes ensuring information non-repudiation and authenticity.
,◍ Social Engineering.
Answer: An attack based on deceiving users or administrators at the target
site into revealing confidential or sensitive information.
◍ Market-to-book ratio and the price-to-earnings ratio are market ratios..
Answer: What kind of ratio are market-to-book ratio and the
price-to-earnings ratio?
◍ Dividends are paid every yearDividends grow at a constant rate forever.
Answer: What assumptions does the Gordon Growth Model make in order
to make the dividend discount model usable?
◍ Return on assets, return on equity, gross margin, operating margin, and net
profit margin are profitability ratios..
Answer: What type of ratio are return on assets, return on equity, gross
margin, operating margin, and net profit margin?
◍ Residual Risk.
Answer: The risk that remains after management implements internal
controls or some other form of response to a risk.
◍ Three major types of financial securities are Treasuries, corporate bonds,
and stocks..
Answer: What are the major types of financial securities?
◍ IT Governance Framework.
Answer: Describes the leadership, organizational structures, and processes
that ensure IT sustains and extends organizational strategies and objectives.
◍ Inherent Risk.
Answer: the risk that exists before management takes any steps to control
the likelihood or impact of a risk.
◍ Risk.
Answer: Making sure that any risk associated with organizational activities
is identifies and addressed in a way that supports the organizations business
goals.
, ◍ Default Risk.
Answer: The probability of a loss resulting from a borrower's failure to
repay a contractual obligation; also called credit risk.
◍ Yield to Maturity (YTM).
Answer: The rate of return that investors receive on a bond if they purchase
a bond today at the market price and hold it until it matures; the required
rate of return given the maturity and risk of the bond.
◍ Hacking.
Answer: An attempt to gain unauthorized access to some element of a
computer system.
◍ Gross Margin.
Answer: A profitability ratio found by gross profit divided by sales.
◍ Risk Avoidance.
Answer: A way to manage risk by not performing an activity that may carry
risk.
◍ Confidentiality.
Answer: Preserving authorized restrictions on access and disclosure,
including means for protecting privacy and proprietary information.
◍ Beta.
Answer: A variable that describes how the price of a security varies with the
market.
◍ Securitization.
Answer: The process of combining several types of contractual debt (such as
mortgages) and reselling them as a package to investors.
◍ Threat.
Answer: Any source that is capable of acting against an asset in a manner
that can result in harm.
◍ Compliance.
Answer: Making sure that organizational activities are operated in a way that
COMPLIANCE 70DF ACTUAL EXAM PAPER
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ COBIT Framework.
Answer: Separates governance from management, strives to aid IT
governance by helping organizations generate the maximum added value to
the business via its IT investments, while mitigating risk and optimizing
resources.
◍ Control Risk.
Answer: Probability of loss arising from the tendency of internal control
systems to lose their effectiveness over time, and this expose the assets they
were instituted to protect.
◍ StandardizationFlexibilityFocusEvaluation(Ratios themselves are not useful,
but through comparisons such as trend analysis, cross-sectional analysis, and
progress measurement, they become meaningful.).
Answer: Why are ratios useful?
◍ Internal Control (COSO Definition).
Answer: A process, affected by an entity's BOD, management and other
personnel, designed to provide reasonable assurance regarding the
achievement of objectives in effectiveness of operations, reliability of
financial reporting, and compliance.
◍ IRR:is easy to interpret,considers time value of money, anddoes not require
use of required rate of return..
Answer: What are the advantages of IRR?
,◍ Availability.
Answer: Ensuring timely and reliable access to and use of information.
◍ Market-to-book Ratio (M/B Ratio).
Answer: A market ratio found by market value of equity divided by book
value of equity.
◍ IT Governance.
Answer: The process that ensures the effective and efficient use of IT in
enabling an organization to achieve its goals.
◍ Leading indicators change before the economy changes and include yield
curve and stock market return..
Answer: What are leading indicators?
◍ The project has the internal rate of return equal to the cost of capital..
Answer: You are considering a project that has a profitability index of 1.
What does this mean?
◍ Malware.
Answer: Software designed to infiltrate, damage, or obtain information from
a computer system without consent.
◍ Governance.
Answer: Ensuring that organizational activities are aligned in a way that
supports the organizations business goals (monitoring of the organization).
◍ It includes all cash flows that occur during the life of the project.It considers
the time value of money.It incorporates the cost of capital—or in other
words, the required rate of return on the project..
Answer: What is the ideal evaluation method for capital investment?
◍ Par Bond.
Answer: A bond whose price is exactly equal to its par value.
◍ Inegrity.
Answer: Guarding against improper modification or destruction, and
includes ensuring information non-repudiation and authenticity.
,◍ Social Engineering.
Answer: An attack based on deceiving users or administrators at the target
site into revealing confidential or sensitive information.
◍ Market-to-book ratio and the price-to-earnings ratio are market ratios..
Answer: What kind of ratio are market-to-book ratio and the
price-to-earnings ratio?
◍ Dividends are paid every yearDividends grow at a constant rate forever.
Answer: What assumptions does the Gordon Growth Model make in order
to make the dividend discount model usable?
◍ Return on assets, return on equity, gross margin, operating margin, and net
profit margin are profitability ratios..
Answer: What type of ratio are return on assets, return on equity, gross
margin, operating margin, and net profit margin?
◍ Residual Risk.
Answer: The risk that remains after management implements internal
controls or some other form of response to a risk.
◍ Three major types of financial securities are Treasuries, corporate bonds,
and stocks..
Answer: What are the major types of financial securities?
◍ IT Governance Framework.
Answer: Describes the leadership, organizational structures, and processes
that ensure IT sustains and extends organizational strategies and objectives.
◍ Inherent Risk.
Answer: the risk that exists before management takes any steps to control
the likelihood or impact of a risk.
◍ Risk.
Answer: Making sure that any risk associated with organizational activities
is identifies and addressed in a way that supports the organizations business
goals.
, ◍ Default Risk.
Answer: The probability of a loss resulting from a borrower's failure to
repay a contractual obligation; also called credit risk.
◍ Yield to Maturity (YTM).
Answer: The rate of return that investors receive on a bond if they purchase
a bond today at the market price and hold it until it matures; the required
rate of return given the maturity and risk of the bond.
◍ Hacking.
Answer: An attempt to gain unauthorized access to some element of a
computer system.
◍ Gross Margin.
Answer: A profitability ratio found by gross profit divided by sales.
◍ Risk Avoidance.
Answer: A way to manage risk by not performing an activity that may carry
risk.
◍ Confidentiality.
Answer: Preserving authorized restrictions on access and disclosure,
including means for protecting privacy and proprietary information.
◍ Beta.
Answer: A variable that describes how the price of a security varies with the
market.
◍ Securitization.
Answer: The process of combining several types of contractual debt (such as
mortgages) and reselling them as a package to investors.
◍ Threat.
Answer: Any source that is capable of acting against an asset in a manner
that can result in harm.
◍ Compliance.
Answer: Making sure that organizational activities are operated in a way that
