You observe this exchange between two amateur investors on Reddit: "If we could just make our investment portfolio large enough we could completely eliminate risk and earn the market rate of return." 

REQUIRED:

Is the above statement correct? If not, explain what is wrong with it. Offer your own advice to these investors about how they should go about forming a portfolio to reduce risk. In your answer you should also explain the difference between systematic risk and unsystematic risk, specify which of these types of risk can be diversified away, and how the remaining type of risk is measured.  

Answer rating: 100% (QA)

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