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3) Which form of risk cannot be diversified away? If systematic risk did not exist, would firm-specific be considered the same as total risk? Why?
3) Which form of risk cannot be diversified away? If systematic risk did not exist, would firm-specific be considered the same as total risk? Why? 4) Under MPT (Modern Portfolio Theory), what do the risk-free rate and the optimal risky portfolio create and why is it special to all other possible portfolios (with the exception of the optimal risky portfolio
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