WGU C214 (NEW) Question and answers 100% correct 2025/2026
The goal of a corporation is to Maximize stock
price
What does beta measure?
The relative
riskiness of an in-
3. What determines the price of financial securities?
dividual
PV stock
of expected
cash flow to in-
vestors
4. Which does not affect the required yield on a bond? Coupon rate
5. Which would be the most efficient market? Buying gas for your car
6. To induce an investor to buy a risky A risk premium
security, the investor must receive
7. Junk bonds are those whose rating is below BBB
8. Diversification protects against Individual firm risk
9. Why is stock valuation so difficult? Estimating future profits
10. If Accounts Receivable increases, what is impact on Decreases
cash flow?
11. The efficient frontier includes investments that Are diversified and
maximize
the return-to-risk ratio
12. A prudent investor would Accept appropriate risk level
13. What are the impacts of tafiffs? More jobs and more
expensive products
14. Which measures a firms ability to produce and sell at a
1/
11
, profit? Cash Flow Operations
2/
11
The goal of a corporation is to Maximize stock
price
What does beta measure?
The relative
riskiness of an in-
3. What determines the price of financial securities?
dividual
PV stock
of expected
cash flow to in-
vestors
4. Which does not affect the required yield on a bond? Coupon rate
5. Which would be the most efficient market? Buying gas for your car
6. To induce an investor to buy a risky A risk premium
security, the investor must receive
7. Junk bonds are those whose rating is below BBB
8. Diversification protects against Individual firm risk
9. Why is stock valuation so difficult? Estimating future profits
10. If Accounts Receivable increases, what is impact on Decreases
cash flow?
11. The efficient frontier includes investments that Are diversified and
maximize
the return-to-risk ratio
12. A prudent investor would Accept appropriate risk level
13. What are the impacts of tafiffs? More jobs and more
expensive products
14. Which measures a firms ability to produce and sell at a
1/
11
, profit? Cash Flow Operations
2/
11
