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What is the source of legitimate power?
Systematic Risk
Systematic risk refers to the inherent risk that affects the entire market or a major market segment and cannot easily be mitigated through diversification.
Diversifiable Risk
A type of investment risk that can be reduced or eliminated through diversification of an investment portfolio.
Systematic Risk
The danger that affects the whole market or a specific sector of the market, commonly referred to as market risk or non-diversifiable risk.
Expected Returns
The anticipated return on an investment, representing the mean of the probability distribution of the possible returns.
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