Proposition 98 Guarantees a Minimum Funding Level for State Education;

question 23

Multiple Choice

Proposition 98 guarantees a minimum funding level for state education; every year, approximately _______ of the state budget is spent on K-14 education.

• A)5 percent
• B)10 percent
• C)25 percent
• D)40 percent

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Definitions:

Positive Abnormal Returns

Returns on an asset or portfolio that exceed the benchmark or expected return given its risk level.

Vanguard Index 500

A mutual fund that aims to mirror the performance of the S&P 500, managed by Vanguard.

Passive Investment

An investment strategy involving minimal buying and selling, aiming to benefit from long-term market returns with low fees.

Four-factor Model

A financial model that expands the three-factor model (market risk, size risk, and value risk) by adding a momentum factor to explain stock returns.