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Find the slope of the line.
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Systematic Risk
The overall market risk that cannot be diversified away by holding a wide range of asset classes.
Market Risk
The risk of losses in investments due to factors that affect the overall performance of the financial markets.
Nondiversifiable Risk
Risk factors common to the whole economy; also called market risk or systematic risk.
Diversifiable Risk
The risk associated with individual investments that can be reduced through diversification by investing in a variety of assets.
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