Of the 35 Pairs of Twins Sir Francis Galton Studied

question 1

Multiple Choice

Of the 35 pairs of twins Sir Francis Galton studied, how many pairs did he find that had very similar personalities?

• A) 0
• B) 9
• C) 16
• D) 35

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Definitions:

Risk Averse

A tendency to prefer certainty over uncertain outcomes to minimize exposure to financial loss.

Market Equilibrium

A situation in a market where the quantity supplied equals the quantity demanded at a certain price level, resulting in no net shortage or surplus.

Arbitrage Opportunities

Situations where a financial instrument or security can be simultaneously bought and sold in different markets at a price discrepancy to generate risk-free profit.

Portfolio Beta

Portfolio beta measures the sensitivity of a portfolio's returns to movements in the market index. A beta greater than one indicates higher volatility than the market, while a beta less than one indicates lower volatility.