Examlex
The Internal Revenue Code is divided into
Systematic Risk
The type of risk inherent to the entire market or an entire market segment, also known as market risk, which cannot be eliminated through diversification.
Diversification
An investment strategy that spreads exposure across various assets to reduce risk.
Unsystematic Risk
The risk associated with an individual asset or firm, which can be mitigated through diversification.
Covariance
A statistical measure that calculates the degree to which two variables move in relation to each other.
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