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Consider the one-factor APT. The standard deviation of returns on a well-diversified portfolio is 22%. The standard deviation on the factor portfolio is 14%. The beta of the well-diversified portfolio is approximately
Epistemic Cognition
The process of thinking about and understanding the nature and limits of knowledge, and how one forms beliefs.
Polar Reasoning
A cognitive process that involves seeing situations or opinions in black and white terms, without acknowledging the nuances or middle ground.
Relative Knowledge
Knowledge or understanding that is dependent on or relational to an individual's perspective or context.
Synthesizes Contradictions
The process of merging opposing ideas or statements to form a new perspective or theory.
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