Question: You are planning for retirement and must decide whether to purchase only your employers stock for your 401(k) or, instead, to buy a mutual fund

You are planning for retirement and must decide whether to purchase only your employer’s stock for your 401(k) or, instead, to buy a mutual fund that holds shares in the 500 largest companies in the world. From the perspective of both idiosyncratic and systematic risk, explain how you would make your decision.

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