Question: Explain the difference between diversifiable and nondiversifiable risk (include examples of each). Also discussion some of the problems you might imagine could arise when actually

Explain the difference between diversifiable and nondiversifiable risk (include examples of each). Also discussion some of the problems you might imagine could arise when actually trying to calculate a required return using the CAPM. Think about the all the decisions you would have to make about the data you would have to input to calculate the beta and then the CAPM (if the data were not given to you) and describe some of the problems you could see occurring.

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