Examlex
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Unsystematic Risk
The risk associated with an individual asset or firm, which can be mitigated through diversification.
Covariance
A statistical measure that calculates the degree to which two variables move in relation to each other.
Correlation
The statistical measure of how two securities move in relation to each other, ranging from -1 to +1.
Risky Assets
Financial instruments that carry a higher degree of risk compared to risk-free assets, potentially leading to higher returns or losses.
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