Consider this diagram showing unsystematic and systematic risk as a function of the number of assets in a portfolio. Choose if a) has thesystematic risk or unsystematic risk.

a)The diagram below shows that as the number of assets in the portfolio increases, i. (thesystematic risk or unsystematic risk)

of the portfolio remains the same while theii.(thesystematic risk or unsystematic risk)of the portfolio reduces. However, after 30 assets are added to the portfolioiii.(thesystematic risk or unsystematic risk)is not completely eliminated. A small gap remains.