You have recently been appointed chief investment officer of ABC limited. Its large endowment fund is currently invested in a broadly diversified portfolio of stocks (60 percent) and bonds (40 percent). The company's board is a group of prominent individuals whose knowledge of modern investment theory and practice is superficial. You decide a discussion of basic investment principles would be helpful. Based on this situation, explain the concepts of specific risk, systematic risk, variance, covariance, standard deviation, and beta as they relate to the diversification decisions regarding stocks (60 percent) and bonds (40 percent)