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Elections, as an institutional mechanism, do which of the following?
Unique Risks
Unique risks refer to the specific and individual risks that affect only a particular company, security, or investment sector, as opposed to risks that affect the entire market.
Unsystematic Risk
The risk associated with a specific company or industry, which can be reduced through diversification.
Asset-specific Risk
Refers to the risk affecting an investment's value that is associated with the particular assets the investment owns, distinct from marketwide risks.
Specific Risk
The risk associated with a particular company or sector, which can be mitigated through diversification.
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