Homework 8.docx - Luis Rodriguez Homework#8 Due at the beginning of class Show your full work for full credit 1(1pt In broad terms why is some risk

Homework 8.docx - Luis Rodriguez Homework#8 Due at the...

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Luis Rodriguez Homework #8 Due 12/5/17 at the beginning of class Show your full work for full credit 1.(1pt) In broad terms, why is some risk diversifiable? Why are some risks non-diversifiable? Does it follow that an investor can control the level of unsystematic risk in a portfolio, but not the level of systematic risk? 2.(1pt) True or false: The most important characteristic in determining the expected return on a well-diversified portfolio is the variances of the individual assets in the portfolio. Explain.
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