WGU D775 Assessment Test In-Depth
Questions with Correct Answers
Graded A+ 2026
What is the time orientation of business finance? ANSWER >> Future projections and
planning
Why use financial ratios? ANSWER >> Evaluate and improve business performance
What is the primary objective of business finance? ANSWER >> Maximizing
shareholder value
What is the purpose of corporate bonds? ANSWER >> Finance operations and
expansions
1
, What are financial derivatives based on? ANSWER >> Underlying assets, indexes, or
rates
What is a future contract? ANSWER >> Standardized contract to buy/sell at future
date/price
How do hedge funds differ from mutual funds? ANSWER >> Use diverse strategies;
sophisticated investors only
How do funds diversify? ANSWER >> Pool money to invest in a variety of assets
What do junk bonds offer? ANSWER >> Higher risk & higher returns
What is a key advantage of ETFs? ANSWER >> Trade all day like stocks
What is an example of a dealer market? ANSWER >> NASDAQ
What is an example of an auction market? ANSWER >> NYSE
What is the purpose of the SEC? ANSWER >> Regulate securities markets, protect
investors
What is the purpose of the CFTC? ANSWER >> Oversee futures & options markets
What is the role of insurance companies? ANSWER >> Underwrite policies to protect
against risks
How do insurance companies earn income? ANSWER >> Premiums + investing funds
What is a key aspect of private equity? ANSWER >> Funds from private investors/VCs
2
Questions with Correct Answers
Graded A+ 2026
What is the time orientation of business finance? ANSWER >> Future projections and
planning
Why use financial ratios? ANSWER >> Evaluate and improve business performance
What is the primary objective of business finance? ANSWER >> Maximizing
shareholder value
What is the purpose of corporate bonds? ANSWER >> Finance operations and
expansions
1
, What are financial derivatives based on? ANSWER >> Underlying assets, indexes, or
rates
What is a future contract? ANSWER >> Standardized contract to buy/sell at future
date/price
How do hedge funds differ from mutual funds? ANSWER >> Use diverse strategies;
sophisticated investors only
How do funds diversify? ANSWER >> Pool money to invest in a variety of assets
What do junk bonds offer? ANSWER >> Higher risk & higher returns
What is a key advantage of ETFs? ANSWER >> Trade all day like stocks
What is an example of a dealer market? ANSWER >> NASDAQ
What is an example of an auction market? ANSWER >> NYSE
What is the purpose of the SEC? ANSWER >> Regulate securities markets, protect
investors
What is the purpose of the CFTC? ANSWER >> Oversee futures & options markets
What is the role of insurance companies? ANSWER >> Underwrite policies to protect
against risks
How do insurance companies earn income? ANSWER >> Premiums + investing funds
What is a key aspect of private equity? ANSWER >> Funds from private investors/VCs
2
