The Variance of a Portfolio Would Be Calculated by Finding

question 5

True/False

The variance of a portfolio would be calculated by finding the variances of the individual components of the portfolio and finding the weighted average of those variances.

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Definitions:

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to holding conflicting beliefs or attitudes, leading to an alteration in one of the beliefs or attitudes to reduce the discomfort.

Reducing Techniques

Strategies or methods used to decrease anxiety, stress, or other negative emotional states.

Bem's Self-Perception Theory

A psychological theory suggesting that people often infer their own attitudes and feelings from observing their behavior and the context in which it occurs, rather than initially recognizing inner attributes as the cause.

State of Tension

A psychological and physical state resulting from the awareness of a discrepancy between the current state and a desired goal, leading to motivation to resolve the discrepancy.