Someone Reads an Article About a Twin Study Conducted to Examine

question 21

Essay

Someone reads an article about a twin study conducted to examine the heritability of creativity. The article reports a heritability estimate of 60%. The reader of the article says, "See, this is why I am not creative. My parents aren't creative, so there isn't anything I can do about it." Is this person's conclusion correct? Discuss why or why not.

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Definitions:

Earnings Yield Ratio

A metric used to evaluate the profitability of a company, calculated as earnings per share divided by the stock price.

Profit Margin

A financial ratio that indicates the percentage of revenue that exceeds the cost of goods sold, showing the profitability of a company.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue—the higher the ratio, the more efficiently the company is utilizing its assets.

Financial Statements

These are written records that convey the business activities and the financial performance of a company, typically including the balance sheet, income statement, and cash flow statement.