Consider a day on which the S&P/TSX 60 Index, an index of 60 large  stocks, rose 59 points. On that same day, Alcan, which is one of the stocks in the Index, announced some unexpectedly bad news. The price of Alcan declined $10 on that same day. Using this example, discussrsystematic risk, portfolio diversification, and asset specific risk. 

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Systematic risk or the market risk is the market risk which is universal for all firms It is the ris... View the full answer