Which of the Following Statements Is True

question 116

Multiple Choice

Which of the following statements is true?

• A) Fraternal and identical twins have about the same correlation on IQ scores.
• B) The correlation of IQ scores of fraternal twins raised together is higher than the correlation of scores of identical twins raised apart.
• C) Fraternal twins have a correlation of +.86 on IQ scores, and identical twins have a correlation of +.60.
• D) Identical twins have a correlation of +.86 on IQ scores, and fraternal twins have a correlation of +.60.

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Definitions:

Standard Deviation

A statistical measure that quantifies the dispersion or spread of a set of data points or investment returns around their mean.

Risk-Free Rate

The theoretical rate of return of an investment with no risk of financial loss, often represented by the yield on government bonds.

Optimal Risky Portfolio

An investment portfolio that offers the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Beta

A measure of a security's volatility in relation to the overall market, indicating the security's risk compared to the market average.