Question
From the perspective of investors, they want to reduce the investment risk. Normally the risk can be classified into two forms, namely systematic and unsystematic
From the perspective of investors, they want to reduce the investment risk. Normally the risk can be classified into two forms, namely systematic and unsystematic risk. Briefly describe the systematic and non-systematic risk. What is the difference in risk measurement between the portfolio and CAPM model? How can we achieve maximum diversification?
(20 marks)
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
