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Why Is More Difficult to Put Markowitz Diversification into Effect

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Why is more Difficult to put Markowitz diversification into effect than random diversification?


Definitions:

Class

A group of students who are taught together in school or a categorization based on shared characteristics or attributes.

Cognitive Dissonance

The mental discomfort or psychological stress experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Psychological Discomfort

A state of emotional distress or unease, often arising from situations that challenge one's existing beliefs or perceptions.

Inconsistent Thoughts

Cognitive states or patterns that lack coherence, often characterized by conflicting ideas or beliefs that do not align logically.

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