The Cognitive Dissonance Theory Proposed That the Desire to Reduce

question 1

Multiple Choice

The cognitive dissonance theory proposed that the desire to reduce dissonance is determined by ________.

• A)authority, responsibility and relevance
• B)stability, position and power
• C)awareness, status and punishments
• D)economics, politics and organisational structure
• E)importance, influence and rewards

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Definitions:

Risk-Aversion Coefficients

Numerical measures quantifying an investor's tolerance for risk, impacting their investment choices and portfolio management.

Treynor-Black Model

A portfolio optimization model that blends a passively managed market index and active stock selections to maximize performance.

Nonsystematic Standard Deviation

A measure of the variability of an investment's return due to factors specific to the investment or its issuer, excluding broader market influences.

Macroeconomic Risks

Considered broad economic or political uncertainties that could affect the performance of financial markets and investments globally.