Question: QUESTION B2. a. Explain why diversification can reduce risk. (7 marks) b. What are the differences between unique risk and market risk? Illustrate your answer

QUESTION B2. a. Explain why diversification can

QUESTION B2. a. Explain why diversification can reduce risk. (7 marks) b. What are the differences between unique risk and market risk? Illustrate your answer using a graph. (8 marks)

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