100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
D076 WGU Q&A WITH COMPLETE SOLUTIONS UNIT3 £3.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. AQA
  4.  
  5. WGU
  6.  
  7. WGU D076

Exam (elaborations)

D076 WGU Q&A WITH COMPLETE SOLUTIONS UNIT3
 1 view  0 purchase
  • Institution
  • AQA

How is risk defined in finance? - The possibility that the realized or actual return will differ from what we expect. (Risk is defined a s the possibility that the realized or actual return will differ from our expected return.) The nominal interest rate of an investment is 8%, and the inflation...

[Show more]

Preview 1 out of 1  pages

Document information

  • February 3, 2024
  • 1
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • d076 wgu qa with complete solutions unit3

Written for

All documents for this subject (128)

Seller

avatar-seller
jessyqueen

Content preview

D076 WGU Q&A WITH COMPLETE
SOLUTIONS UNIT3
How is risk defined in finance? - ✔✔The possibility that the realized or actual return will differ from
what we expect. (Risk is defined a s the possibility that the realized or actual return will differ from our
expected return.)

The nominal interest rate of an investment is 8%, and the inflation rate is 3%. What is the real interest
rate? - ✔✔5% (Real Rate = Nominal Rate - Inflation, so 8% - 3% = 5%)

What is another name for the cost of capital? - ✔✔Discount rate

What is the name for the minimum rate of return that an investor or lender will accept for investments?
- ✔✔Required rate of return

Which action reduces the future value of cash flows? - ✔✔Receive all cash flows later than expected.
(The later the cash flows are received, the lower the future value is.)

Which example below is considered a market risk factor? - ✔✔An unexpected change in interest rate
occurs. (This is a factor that affects everyone because it will cause the cost of borrowing and lending to
increase. This is a market risk factor.)

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller jessyqueen. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £3.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

52510 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now

Start selling
£3.49
  • (0)
Add to cart
Added