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a. Distinguish risk averse, risk neutral, and risk seeker investor. b. What are the benefits of diversification/portfolio to an investor? What are the key factor
a. Distinguish risk averse, risk neutral, and risk seeker investor. b. What are the benefits of diversification/portfolio to an investor? What are the key factor determining the extent of these risks? c. Total risk can be decomposed into systematic and unsystematic risk. Explain each component of risk, and how each is affected by increasing the number of securities in a portfolio
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