Define Cognitive Dissonance

question 73

Essay

Define cognitive dissonance.Review Festinger and Carlsmith's (1959)classic demonstration of cognitive dissonance,being sure to identify the independent and dependent variables in their study.Suggest one real-world example potentially involving cognitive dissonance and indicate several ways that dissonance may be reduced in the situation you describe.

Grasp the significance of factor models, including multifactor APT, in explaining asset returns.

Comprehend the underlying assumptions and implications of the APT.

Calculate expected returns on portfolios using multifactor models.

Understand the risk-return relationship as defined by modern financial theories.