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Describe the impact that strategy, size, technology, and environment have on structure.
Diversified
A strategy that involves spreading investments across various financial assets, industries, or other categories to reduce risk.
Market Risk
The risk of losses in investments due to factors that affect the overall performance of the financial markets.
Systematic Risk
The overall impact of market-wide phenomena on the value of investments, as opposed to risks that are specific to a particular investment.
Nondiversifiable Risk
Also known as systematic risk, it refers to the portion of an investment's risk that cannot be eliminated through diversification, affecting the entire market or economy.
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