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4. (8 marks) Explain in terms of systematic and non-systematic risk a. how diversification works. (4 marks) b. why portfolio risk (p) will decrease

4. (8 marks) Explain in terms of systematic and non-systematic risk a. how diversification works. (4 marks) b. why portfolio risk (p) will decrease as the size of a portfolio (in terms of the number of assets) increases. (4 marks)

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