Portfolio Weights Are Found By

question 24

Multiple Choice

Portfolio weights are found by:

• A)dividing standard deviation by expected value
• B)calculating the percentage each asset's value to the total portfolio value
• C)calculating the return of each asset to total portfolio return
• D)dividing expected value by the standard deviation

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Definitions:

Cognitive Dissonance

A psychological state of discomfort arising from holding two or more conflicting beliefs, values, or attitudes, leading to behavior change or attitude adjustment.

Consistency

is the tendency to maintain a uniform behavior, attitude, or belief over time.

Cognitions

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Motivated

Having a desire or willingness to achieve something, often accompanied by enthusiasm.