Question: Question 4 a ) Compare and contrast systematic and unsystematic risk. Explain how diversification affects each type of risk and discuss the implications for portfolio
Question
a Compare and contrast systematic and unsystematic risk. Explain how diversification affects each type of risk and discuss the implications for portfolio management.
b Describe the Capital Asset Pricing Model CAPM What are its key assumptions and limitations How does it help in determining the required rate of return for investments?
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