Capital budgeting questions test timing
NPV and IRR questions require cash-flow timing, discount rates, and signs to be handled correctly. A positive NPV means expected value creation after required return.
WACC questions test capital structure
A WACC calculation depends on market weights, after-tax debt cost, and required equity return. Book values can mislead when market values differ.
Bond questions test yield-price direction
Fixed-rate bond prices usually fall when market yields rise. Duration and convexity help estimate sensitivity.
Portfolio questions test covariance
Portfolio risk depends not only on individual volatility, but also on how assets move together. Correlation changes diversification benefit.