Peter Is a 4-Year-Old Who Can Already Read and Has

question 61

Multiple Choice

Peter is a 4-year-old who can already read and has the vocabulary of a 10-year-old.His parents also love to read,so his house is filled with books.What is the most reasonable conclusion about the source of Peter's high intelligence?

• A) He inherited genes for high intelligence from his parents.
• B) His parents provided the stimulating environment needed to develop his intelligence.
• C) His intelligence resulted from an interaction of both genes and environment.
• D) Neither genes nor the environment are the cause of his high intelligence.

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Definitions:

Risk Adjusted Performance

An evaluation of an investment's return after accounting for the degree of risk that was taken to achieve it.

Portfolio

An assortment of financial assets including stocks, bonds, and commodities, as well as cash and near-cash items like mutual funds and ETFs.

Sharpe Ratio

Reward-to-volatility ratio; ratio of excess return to portfolio standard deviation.

Standard Deviation

Standard Deviation is a measure of the dispersion or variability of a set of data points or investment returns around the mean.