Question: The difference between systematic and unsystematic risk is as follows-which correctly defines these two different types of risk: ) Systematic risk: the risk associated with

The difference between systematic and unsystematic risk is as follows-which correctly defines these two different types of risk: ) Systematic risk: the risk associated with all securities and cannot be reduced through diversification. (i.e. interest rate risk); Unsystematic risk: risks associated with one particular investment and can be reduced through diversification. (i.e. financial risk) 2 ) Unsystematic riskthe risk associated with all securities and cannot be reduced through diversification . (i.e. interest rate risk); Systematic risk: risks associated with one particular investment and can be reduced through diversification. (i.e. financial risk)

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