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Recall that Scarr and Carter-Saltzman (1979) examined the similarity of personality and other characteristics (a) for identical twins whose parents mistakenly believed them to be fraternal twins,and (b) for fraternal twins whose parents mistakenly believed them to be identical twins.What results did they obtain?
Diversified Portfolio
An investment portfolio constructed to spread risk by selecting assets across various classes.
Rate of Return
The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.
Risk-Free Rate
The interest rate that can be earned with certainty, commonly taken to be the rate on short-term Treasury bills.
Security Market Line
A graphical representation that shows the relationship between the expected return of an investment and its risk as measured by beta.
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