Examlex
Compare and contrast synthesis reactions with decomposition reactions.
Diversification
A risk management strategy that mixes a wide variety of investments within a portfolio.
Idiosyncratic Risk
The risk associated with an individual asset, which can be mitigated through diversification.
Systematic Risk
Systematic risk refers to the inherent risk that affects the entire market or a major market segment and cannot easily be mitigated through diversification.
Diversifiable Risk
A type of investment risk that can be reduced or eliminated through diversification of an investment portfolio.
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