Which Child Would Be Most Likely to Have the Highest

question 165

Multiple Choice

Which child would be most likely to have the highest upper limit of his or her reaction range for intelligence?

• A) a middle-class white child with an IQ of 100
• B) a middle-class minority child with an IQ of 105
• C) a lower-class minority child with an IQ of 95
• D) not enough information is provided to make an "educated" prediction

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Definitions:

Underwriting

Underwriting involves assessing the risk of insuring or financing and setting the appropriate terms and conditions for doing so. It is commonly used in insurance and banking.

Preemptive Rights

A stockholder’s right to maintain her proportionate ownership in a corporation. The stockholder has the right to buy a share of any newly issued stock that is proportionate to her fractional ownership of the company before the new issue. The right is not a matter of law but must be written into the corporation’s bylaws.

Proportionate Ownership

Ownership shares in a company or asset divided among investors in proportion to their investment.

Efficient Markets

A financial market hypothesis suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher-than-average returns.