Question: 34. Why is it that we cannot completely eliminate all risk simply by diversifying? 35. Explain what EACH part of the Security market Line

34. Why is it that we cannot completely eliminate all risk simply by diversifying? 35. Explain what EACH part of the Security market Line represents: Rs = Rf + B(Rm-Rf) 36. Explain what a risk premium is. What is the formula for the market risk premium? V formula for the risk premium of an individual stock? R = interest rate asset - rt

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