Examlex
The main takeaway from this chapter is that:
Market Risk
The potential for investors to experience losses due to factors that affect the overall performance of the financial markets.
Diversified Away
Refers to the reduction of risk in a portfolio by investing in a variety of assets, thus minimizing the impact of any single investment's performance.
Firm-specific Risk
The risk associated with an individual company, which can be mitigated through diversification.
Beta
A metric used in finance to determine an investment's volatility or risk as compared to the overall market.
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