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In the CAPM model: investors get rid of idiosyncratic (firm-specific) risk by diversifying investors get rid of systematic (economy-wide) risk by diversifying investors get rid

In the CAPM model:

investors get rid of idiosyncratic (firm-specific) risk by diversifying

investors get rid of systematic (economy-wide) risk by diversifying

investors get rid of idiosyncratic (firm-specific) risk by researching which stock to purcahse

investors get rid of systematic (economy-wide) risk by not investing in the riskless asset

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