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Find the x-intercept(s) of the graph of the equation. Graph the equation.
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Market Risk
The risk of losses in investments due to factors that affect the entire market or asset class, such as economic changes or political events.
Firm-specific Risk
The type of risk that affects a particular company or industry, also known as unsystematic risk.
Diversified Away
The risk that can be reduced or eliminated in a portfolio through investments in a variety of assets, thus not tied to the performance of a single investment.
Market Risk
The risk of losses in positions arising from movements in market prices.
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