If You Were Trying to Separate the Effects of Inheritance

question 61

Multiple Choice

If you were trying to separate the effects of inheritance from the effects of environment,comparing which groups of subjects would give you the strongest evidence?

• A) monozygotic and dizygotic twins
• B) twins and their non-twin siblings
• C) adopted children and children raised by their biological parents
• D) monozygotic twins reared together and monozygotic twins adopted into separate homes

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Definitions:

Derivative Security

A financial instrument whose value is derived from the value of another asset, known as the underlying asset.

Financial Asset

A financial asset refers to any asset that is cash, an equity instrument of another entity, or a contractual right to receive cash or another financial asset from another entity.

Transactions Exposure

The potential for a company's cash flows to be affected by changes in exchange rates due to transactions in foreign currencies.

Financial Risk

Financial risk involves the possibility that a company's cash flow will not be sufficient to meet its obligations, which can result from volatility in the markets, business operations, or creditworthiness.