1 . What is the difference between firm - specific risk and unsystematic risk? 2 . Explain...
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What is the difference between firmspecific risk and unsystematic risk?
Explain why diversification reduces unsystematic risk but not systematic risk.
Explain what happens to the standard deviation of returns of a portfolio as the number of stocks in the portfolio increases.
Enrique owns five stocks: Alaska Airlines, American Airlines, Delta Airlines, Southwest Airlines, and Ford. Radha also owns five stocks: Apple, McDonalds Tesla, Facebook, and Disney. Does Enrique or Radha have a more diversified portfolio?
You are considering purchasing shares in a company that has a beta of Explain what this beta means.
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