If Only the More Costly Elements of a Program Are

question 14

Multiple Choice

If only the more costly elements of a program are eliminated because of negative findings,

• A) one should question the value of the evaluation.
• B) the staff probably has excessive power.
• C) the evaluator did not do a thorough job of communicating the negative nature of the findings.
• D) the evaluation served a useful purpose, especially if additional study is to be done.

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Definitions:

Returns

The profit or loss derived from investing or saving, often expressed as a percentage of the original investment.

Risk Premium

The return in excess of the risk-free rate of return that an investment is expected to yield.

Risky Asset

An investment that carries a significant possibility of losing some or all of its value.

Risk-Free Investment

An investment that is considered to be free of credit risk, with the most common examples being government-issued securities.