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1. Explain the CAPM idea Key words: systematic risk, non-systematic risk, idiosyncratic risk 2. explain the difference between diversifiable and non-diversifiable risk, and how each

1. Explain the CAPM idea

Key words: systematic risk, non-systematic risk, idiosyncratic risk

2. explain the difference between diversifiable and non-diversifiable risk, and how each type of risk is mitigated

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