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Why can unsystematic risk be diversified away? Because it is related to the overall market or economy and can be spread across different asset classes
Why can unsystematic risk be diversified away?
Because it is related to the overall market or economy and can be spread across different asset classes
Because it affects all assets in a portfolio equally and can be reduced through proper asset allocation
Because it is specific to a particular company or asset and can be eliminated through diversification
Because it is always larger than systematic risk so it will be replaced by systematic risk when mixing different assets together
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