According to the Text, Societies Are Willing to Make Large

question 84

Multiple Choice

According to the text, societies are willing to make large financial investments in tertiary education because an educated population ____.

• A) is a key to economic growth in a world economy that is increasingly based on information, technology and services
• B) is a key to military defence and the development of arms
• C) is a key to a democratic government and buffers a nation from radical thought
• D) allows for a greater degree of homogeneity, unity and an appreciation of diversity

---

Definitions:

Beta Coefficient

The beta coefficient measures the volatility of an investment in relation to the market as a whole, indicating its relative risk.

Variance of Returns

A statistical measurement of the dispersion of returns for a given security or market index, often used as a measure of volatility or risk.

Security Market Line

A representation in the Capital Asset Pricing Model (CAPM) showing the expected return of a security or portfolio in relation to its risk (beta).

Reward to Risk Ratio

A metric utilized by investors for comparing the anticipated gains from an investment against the risk incurred to attain those gains.