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Do not exceed 750 words. You are allowed to cite websites and have references. Thanks. Describe why a fully diversified portfolio is said to have

Do not exceed 750 words. You are allowed to cite websites and have references. Thanks.

Describe why a fully diversified portfolio is said to have no unsystematic risk but has systematic risk? Then describe how the Arbitrage Pricing Theory (APT) has a cause and effect on the expected return of a security.

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