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Provide a clear articulation of the differences between Total Risk, Diversifiable/Unique/Firm-Specific-Idiosyncratic Risk, and Non-Diversifiable/Market Risk and Beta. For two dissimilar companies (pick 2 real-world ones),
Provide a clear articulation of the differences between Total Risk, Diversifiable/Unique/Firm-Specific-Idiosyncratic Risk, and Non-Diversifiable/Market Risk and Beta. For two dissimilar companies (pick 2 real-world ones), give some examples of unique risk events and examples of market risk events. Explain why the degree of market risk between the two companies will be different.
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