Question: 1. difference between systematic and unsystematic risk? 2. how does diversification reduce unsystematic risk? 3. what does CAPM mean? 4. how risk free asset can

1. difference between systematic and unsystematic risk? 2. how does diversification reduce unsystematic risk?

3. what does CAPM mean?

4. how risk free asset can influence portfolio expected risk and return perspective?

5. why does the investment theory talk about optimal portfolio?

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