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Assume that an investor invests in one risky and one risk free asset. Let σm be the standard deviation of the risky asset and b the proportion of the portfolio invested in the risky asset. The standard deviation of the portfolio is then equal to ________.
Drive-Reduction Theory
A theory that explains motivation as being rooted in the desire to reduce uncomfortable internal states.
Internal Tension
A psychological state characterized by a conflict of emotions or impulses within an individual, often leading to stress or mental discomfort.
Motivation
The psychological force that drives individuals toward achieving goals and fulfilling needs.
Yerkes-Dodson Law
A theory suggesting there is an optimal level of arousal for achieving peak performance; too little or too much arousal can impair performance.
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