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Teams ___________

question 52

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Teams ___________.


Definitions:

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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