Suppose Identical Twins Raised Apart Have a Correlation of

question 95

Multiple Choice

Suppose identical twins raised apart have a correlation of .40 on a measure of some aspect of personality,and identical twins raised together have a correlation of .60 on this same measure.From these data,what can we logically conclude about this trait?

• A)Nonshared environment has an impact because,even raised together,the identical twins do not show a perfect 1.00 correlation.
• B)Nonshared environment has no impact because the identical twins raised apart have a lower correlation than the identical twins raised together.
• C)Shared environment has no impact because identical twins raised apart have a correlation lower than 1.00.
• D)Shared environment has an impact because identical twins raised apart have a correlation of .40.

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Definitions:

Opportunity Costs

The cost of an alternative that must be forgone to pursue a certain action. Put differently, the benefits you could have received by taking an alternative action.

WACC

Weighted Average Cost of Capital, the average rate of return a company is expected to pay to all its security holders, including equity and debt.

Calculate

The act of determining a value or amount by mathematical means, often to analyze financial or statistical data.

Borrowed

The act of receiving something, especially money, with the obligation to return it or its equivalent.