Question: a ) Explain the difference between systematic risk and unsystematic risk with that aid of the graph. b ) Musonda currently has a portfolio of
a Explain the difference between systematic risk and unsystematic risk with that aid of the graph.
b Musonda currently has a portfolio of shares giving a return of with a risk of He is considering a new investment which gives a return of with a risk of The coefficient of correlation of the new investment with his existing portfolio is The new investment will comprise of his enlarged portfolio.
Calculate the portfolio risk and expected return if Musonda goes ahead with the new investment? with references
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