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34. Why is it that we cannot completely eliminate all risk simply by diversifying? 35. Explain what EACH part of the Security market Line

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34. Why is it that we cannot completely eliminate all risk simply by diversifying? 35. Explain what EACH part of the Security market Line represents: Rs = Rf + B(Rm-Rf) 36. Explain what a risk premium is. What is the formula for the market risk premium? V formula for the risk premium of an individual stock? R = interest rate asset - rt

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