The key concept underlying an investment portfolio is Maximize Return Minimize Total Risk O Optimize Return O Diversification of Risk The Federal Reserve announces a significant increase in interest rates in order to combat higher than expected and persistent inflation. This is an example of risk. O Unsystematic Risk Stock Risk O Firm-specific Risk Systematic Risk A pharmaceutical company announces that one of its top selling products has been recalled by the FDA. This is an example of risk. O Stock Risk O Unsystematic Risk Market Risk Systematic Risk