Examlex
Which statement best describes the defining characteristic of the North American family?
Systematic Risk
The inherent risk associated with the entire market or market segment, undiversifiable through portfolio diversification.
Unsystematic Risk
The risk associated with a specific company or industry, which can be mitigated through diversification of an investment portfolio.
Security Market Line
A representation in the capital asset pricing model (CAPM) showing the relationship between expected return and systematic risk.
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