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The total risk of an investment is defined as The correlation between an investment and the rest of the portfolio O the degree of aversion

The total risk of an investment is defined as The correlation between an investment and the rest of the portfolio O the degree of aversion the investor has toward the investment The tendency of investments to be inefficient The uncertainty that the expected return will actually occur

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Fundamentals of Corporate Finance

Authors: Berk, DeMarzo, Harford

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