Why Is Medicaid Such a Complicated Program

question 43

Multiple Choice

Why is Medicaid such a complicated program?

• A) because it is a federal program, and all federal programs are complicated
• B) because it is administered by cities, which have very large bureaucracies
• C) because it relies on monies from the Social Security Trust Fund
• D) because it varies a great deal by state
• E) because it was designed by bureaucrats

---

Definitions:

Market Risk Premium

The difference between the expected return on a market portfolio and the risk-free rate.

Portfolio Beta

A measure of a portfolio's sensitivity to market movements, indicating its volatility relative to the market.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield on government securities like U.S. Treasury bonds.

Sample Standard Deviation

A measure of the dispersion or variability in a subset of data from its mean, used to estimate the standard deviation of the entire population.