Question: A ) Explain the difference between systematic and unsystematic risk. Also , explain why one of thes e types of risks is rewarded with a

A) Explain the difference between systematic and unsystematic risk. Also,explain why one of these types of risks is rewarded with a risk premium while the other type is not

B) Stocks A and B each have an expected return of 15%, a standard deviation of 20%, and a beta of 1.2. The returns on the two stocks have a correlation coefficient of +0.6. Your portfolio consists of 50% A and 50% B. What is the expected return of the portfolio

C) What does portfolio reduction mean and under what condition is this possible.

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