Add Text Edit Picture insert pictures Change Fluid Crop Page Split Page Header and Footer Background Watermark Question 4 a) With appropriate example, explain the difference between systematic and unsystematic risk. (8 marks) b) Briefly explain the mechanism of diversification. (4 marks) c) Provide simple explanation on how interest rates affect returns on other investments (5 marks) d) The nominal return on an investment is an illusion. Explain. (5 marks) e) Describe the eight (8) sources of risk in the risk-return trade off. (8 marks) TOTAL 30 MARKS 6/6 hp 5 6 & 7 8 9