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You have decided to invest in the market and you have no investments in risky assets. Your parents' investment advisor recommends to invest in Ceylon
You have decided to invest in the market and you have no investments in risky assets. Your parents' investment advisor recommends to invest in Ceylon Tea (see above). He reasons that you own no other stock and the return is good relative to the risk. Agree or disagree with the analysis based on systematic and unsystematic risk. Would your answer change if the beta was higher (or lower)?
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