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1.What is Risk? What two factors are important in determining the degree of risk? 2. Both investing and gambling can be defined as undertaking risk

1.What is Risk? What two factors are important in determining the degree of risk?

2. Both investing and gambling can be defined as undertaking risk in order to earn a profit. Explain how these two activities are different and why society generally takes a more favorable view of investing compared to gambling.
3. What is diversifiable risk? What is market or non-diversifiable risk? Give an example of each.

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