Assignment 3: (30 marks) (a) What is the role of diversification in the capital asset pricing model? (10 marks) (b) Indicate why you agree or disagree with justifications to the following statements: (i) As a percentage of the total risk, the unsystematic risk of a diversified portfolio is greater than that of an individual asset." (10 marks) (ii) An investor should be compensated for accepting unsystematic risk. (10 marks)