Whats the True Return on Investment of an MBA?

The video discusses the return on investment (ROI) of an MBA degree, featuring insights from the Dean of NYU's Eastern School of Business. It explains the ROI calculation method used by Bloomberg Business Week, which considers post-MBA compensation, tuition, and pre-MBA earnings. The video compares the top and bottom MBA programs in terms of ROI, highlighting that elite schools often have lower immediate returns. It also addresses the rising costs of higher education and the value it provides, emphasizing the need for delivering maximum educational value.

What is the formula used to calculate the ROI of an MBA degree?

• Post-MBA compensation bump divided by tuition and fees plus pre-MBA compensation

• Post-MBA compensation divided by pre-MBA compensation

• Pre-MBA compensation divided by post-MBA compensation bump

• Tuition and fees divided by post-MBA compensation

Which of the following schools is NOT in the top five for MBA ROI according to the transcript?

• Notre Dame

• Harvard

• Brigham Young

• Carnegie Mellon

What is the ROI percentage for Stanford's MBA program as mentioned in the transcript?

• 20%

• 21%

• 22%

• 18%

What is the main critique of the ROI calculation method discussed in the transcript?

• It uses a one-year horizon which is not ideal.

• It overestimates the pre-MBA compensation.

• It ignores the prestige of the institution.

• It does not consider the cost of living.

What challenge related to higher education is highlighted in the final section?

• Limited job opportunities post-graduation

• Lack of qualified faculty

• Rising costs of higher education

• Decreasing student enrollment