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QUESTIONS 1. What is the difference between nondiversifiable (systematic) risk and diversifabe (unsystematic) risk? 2. What is a diversified portfolio? What type of risk is

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QUESTIONS 1. What is the difference between nondiversifiable (systematic) risk and diversifabe (unsystematic) risk? 2. What is a diversified portfolio? What type of risk is reduced through diversifice tion? How many securities are necessary to achieve this reduction in risk? Whz characteristics must these securitics poss

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