n this course, you have learned about the concept of risk and diversification. In your own words, explain what the following diagram would mean in terms of diversification. Your discussion should include (i) what X-axis and Y-axis in the diagram measure; (ii) identify and briefly explain the two major risk components measured by ii.a. and ii.b. in the diagram; (iii) identify the portion of risk that cannot be diversified away and briefly explain why; and (iv) the overall message portrayed in this diagram in terms of diversification. [Word limit: 150 words (answers beyond word limit will not be marked).]

Y-axis=? ii.b. ii.a. X-axis=? Y-axis=? ii.b. ii.a. X-axis=