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a. Describe what is meant by systematic and unsystematic risk. How is this distinction related to an investment ' s beta? b. Describe what the

a. Describe what is meant by systematic and unsystematic risk. How is this distinction

related to an investment's beta?

b. Describe what the Capital Asset Pricing Model tells you to your father, who has never had a course in finance. What is the key insight we gain from this model?

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