Which of the Following Is True Regarding the Intellectual Differences

question 44

Multiple Choice

Which of the following is true regarding the intellectual differences between and within various groups?

• A) If differences within groups are at least partly genetic in origin, then differences between groups are also genetic.
• B) The genetic differences between groups are 100 percent even though the within-group difference is entirely due to the environment.
• C) Even if variation within each group is mostly due to genetic differences, the differences between groups may still be due to environmental differences.
• D) Heritability estimates are valid in regard to group differences but not in regard to the variance found within a group.

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Definitions:

Risk-free Asset

An investment that is expected to return its original investment without any loss and with a certain rate of return. Typically, government bonds are considered close to risk-free.

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating the stock's risk compared to the market risk.

Systematic Risk

The risk inherent to the entire market or market segment, representing factors that affect all companies such as economic, political, or social changes.

Diversifiable Risk

The portion of an investment's risk that can be reduced or eliminated through portfolio diversification, also known as unsystematic risk.