Cognitive Dissonance Always __________

question 64

Multiple Choice

Cognitive dissonance always __________.

• A) leads to a change in behavior
• B) produces discomfort
• C) leads to the rationalization trap
• D) makes people produce new cognitions

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Definitions:

Active Portfolio

An investment portfolio managed with the intention to outperform the market by selecting and managing investments through active decision-making.

Treynor-Black Model

The Treynor-Black Model is a portfolio optimization method that combines actively selected securities with a passively managed market portfolio for better risk-adjusted returns.

Macroeconomic Risks

Risks that arise from changes in economic policies, political stability, or other macroeconomic factors that can impact the overall market.

Microeconomic Risks

Risks associated with the effects of market mechanisms on supply and demand, influencing individual decisions in small-scale economies.