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When two heterozygotes are mated, the ratios of the offspring produced should be in a 1:2:1 ratio if normal Mendelian segregation is occurring. If one of the alleles is dominant, then the phenotypes observed should be present in a 3:1 ratio with the dominant phenotype more common than the recessive one. We can use a χ2 goodness-of-fit test to test whether the ratio of offspring is indeed 3:1. Imagine a cross is performed and the number of offspring observed are 67 with the dominant phenotype and 33 with the recessive phenotype. What is the χ2 value we would obtain?
Risk-Free Rate
The expected profit from an investment that carries no risk of losing money, frequently depicted through the interest rate of government bonds.
Market Portfolio
A theoretical bundle of all possible investments in the market, combined in such a way as to maximize the expected return for a given level of risk.
Beta
A measure of a security's volatility in relation to the overall market.
P/E Ratio
The price-to-earnings ratio is a valuation measure comparing the current share price of a company to its per-share earnings.
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