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Which of the following is true of unsystematic risk? It is also known as non-diversifiable risk. It can be diversified away by relying on the

Which of the following is true ofunsystematicrisk?

  • It is also known as non-diversifiable risk.
  • It can be diversified away by relying on the lack of a tight positive relationship among the returns of a set of individual assets.
  • Its presence commands a return in excess of the risk-free rate.
  • The correlation among the returns of assets within a portfolio are irrelevant to this type of risk.

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