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Assume that most investors put together a well-diversified portfolio, and mangers manage in the interest of the well diversified shareholder. Should the manager be more
Assume that most investors put together a well-diversified portfolio, and mangers manage in the interest of the well diversified shareholder. Should the manager be more interested in the diversifiable risk or non-diversifiable risk a project brings to the company? And which of these two does Beta measure?
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