What Was the Most Significant Cause of the Increase in Federal

question 21

Multiple Choice

What was the most significant cause of the increase in federal aid to higher education in the late 1950s?

• A) influx of non-English-speaking Hispanics into the United States.
• B) alarm over the popularity of the nonconformist Beats on college campuses.
• C) "war on poverty" that was declared when it became apparent that high-school drop-outs were swelling the welfare rolls
• D) discovery that there were more private schools in the suburbs than public schools in the cities.
• E) launch of Sputnik , which gave Americans reason to fear that they were intellectually and technologically backward.

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Definitions:

Equally-Weighted Portfolio

An investment portfolio in which each asset is invested in with an equal amount of capital, providing diversification and reducing risk.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Security Market Line

A line drawn on a graph that shows the relationship between risk and the expected return of the market, used in the capital asset pricing model to determine a security's risk premium.

APT

Arbitrage Pricing Theory, a multifactor model that describes the relationship between a financial asset's returns and its economic factors.