Question: Explain how nondiversifiable risk differs from diversifiable risk. Why is it that the market will pay an investor for taking on nondiversifiable risk but will

Explain how nondiversifiable risk differs from diversifiable risk. Why is it that the market will pay an investor for taking on nondiversifiable risk but will not pay an investor for taking on diversifiable risk? Will diversifiable risk be zero if nondiversifiable risk is zero? Explain.

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