Richard is a portfolio manager at Austin Associates. For all his clients, Richard manages portfolios that lie on the Markowitz efficient frontier. Richard asks Mary Regan, CFA, a managing director at Austin, to review the portfolios of two of his clients. The Eagle Manufacturing Company and the Rainbow Life Insurance Co$.$ both porfolios have substancially different expected returns. Richard remarks that the Rainbow portfolio has a higher expected return because it has greater nonsystematic risk than Eagle's portfolio. Define nonsystematic risk and explain why you agree or disagree with Richard's remark.