Question: Risk is often divided into two categories; systematic and unsystematic risk.Define the two types of risk, explain the difference, and give two examples of each

Risk is often divided into two categories; systematic and unsystematic risk.Define the two types of risk, explain the difference, and give two examples of each type of risk.

Can diversification reduce systematic risk? If yes, explain why; if no, explain why not.

Can diversification reduce unsystematic risk? If yes, explain why; if no, explain why not.

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