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Describe who should conduct a security audit and advantages,if any.
Diversification
An investment strategy that spreads exposure across various assets to reduce risk.
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.
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