College Risk and Return

High Rates of Return on College Education Comes with High Risk

Attending college has been considered one of the most protable investments, annualized returns ranging from 8% to 13% (Card 1999). I utilize a simple approach, as in Mehra and Prescott (1985), to quantify how much of the excess return to college is explained by its risk. I also explore the role played by heterogeneous…

Mar 8, 2015 1 1

• academia
• economics
• education
• investment