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please help me out. can you please answer both of them? thumps up later on. 1. Explain the effect of diversification on portfolio risk. What

please help me out. can you please answer both of them? thumps up later on.

1. Explain the effect of diversification on portfolio risk. What is the importance of correlation in the context of diversification?

2. Distinguish between systematic and unsystematic risk? Why should investors care?

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