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Define systematic and unsystematic risk

Define systematic and unsystematic risk, and articulate two examples for each.

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Systematic risk refers to a risk that exists in the entire market or entire market segment. Systematic risk cannot be avoided but can be minimized. In order to minimize systematic risk, investors usually diversify the investment. Diversification provides security in the sense that losses in some investments can be negated by gains in other type of investment. As an ...

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This solution defines systematic and unsystematic risk