Asked by
Student Mary Davis
on Nov 07, 2024
Verified
Diversification works because unsystematic risk exists.
Unsystematic Risk
The risk associated with a specific company or industry, which can be mitigated through diversification.
Diversification
A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.
- Acquire knowledge about the role of diversification in controlling risk in investment collections.
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Learning Objectives
- Acquire knowledge about the role of diversification in controlling risk in investment collections.
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