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What Is the Difference Between Unique Risk,which Can Be Diversified

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Essay

What is the difference between unique risk,which can be diversified away,and market risk,which cannot?


Definitions:

Esters

Organic compounds derived from carboxylic acids where the hydrogen in the hydroxyl group is replaced by an alkyl or aryl group, often responsible for the aroma of fruits.

Transesterification

A chemical reaction in which an ester is transformed into another ester through the exchange of the alkoxy group.

Methyl Benzoate

An ester formed from methanol and benzoic acid, commonly used in perfumery and flavorings.

Sodium Ethoxide

A strong base formed by the reaction of ethanol with sodium metal, commonly used in organic synthesis.

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