Question: Why some risk are diversifiable and some risks are nondiversifiable? Does it follow that an investor can control the level of unsystematic risk in a

Why some risk are diversifiable and some risks are nondiversifiable? Does it follow that an investor can control the level of unsystematic risk in a portfolio, but not the level of systematic risk? What type of risk is relevant for determining the expected return? Also explain why one of these types of risks is rewarded with a risk premium while the other type is not.

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