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c. In what sense diversification reduces risk, in the case of two risky asset? In what sense diversification reduces the risk in the case of

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c. In what sense diversification reduces risk, in the case of two risky asset? In what sense diversification reduces the risk in the case of two risky asset and the risk-free asset? Assume now that the portfolio is composed of n securities. In what sense diversification reduces the portfolio risk by driving its "unique" component to zero? Discuss

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