Wgu C214 Study Guide With Correct Questions & Answers Update(Scored A)

Thinking about levels of market efficiency quadrants. Which investment option should be selected assuming a prudent investor wants to maximize their expected return E(R)? Quad 1; Quad 2; Quad 3; Quad 4 A. A B. B C. C D. D E. E {Ans: a}What are discretionary accounts? A. Accounts that require management to deliberately increase or decrease B. Accounts that increase automatically with sales C. Accounts that include current assets D. Accounts that only appear on an income statement {Ans: a}Diversification protects against a. Systematic risk b. Market risk c. Idiosyncratic risk d. Inflation risk {Ans: c}Dealer markets have a physical location. {Ans: F}In an inefficient market, prices will slowly respond to new information. {Ans: T}Which of the following is generally true? a. Gross Profit and Operating Income are the same b. Cost of Goods Sold + Operating Expenses = Net Income c. Operating Income and EBIT are the same d. EBIT + Income Taxes = Net income {Ans: c}When is a company that has strong operating revenues and competent management a good investment? A. When the intrinsic value of the price per share is higher than the current stock price B. When the