From the Age of 3, Sam Has Been Raised by His

question 149

Multiple Choice

From the age of 3, Sam has been raised by his mother who works 50 hours per week at a minimum-wage job. Sam goes to a "failing" school. According to statistics, Sam's intelligence test scores MOST likely will reflect _____ more than _____.

• A) environmental forces; genetically based abilities
• B) genetically based abilities; environmental forces
• C) verbal skills; math skills
• D) math skills; verbal skills

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Definitions:

Expected Return

The projected average return on an investment, considering all possible outcomes weighted by their respective probabilities.

Risk Premiums

The additional return expected from an investment when compared to a risk-free asset, compensating investors for bearing higher risk.

Multifactor APT

Multifactor APT (Arbitrage Pricing Theory) is a theoretical framework that estimates the expected return on a financial asset, considering multiple risk factors and arbitrage opportunities in the market.

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss, typically represented by government bonds.