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    What is the difference between systematic and unsystematic risk? How can diversification help reduce unsystematic risk? Can systematic risk be mitigated? Why and why not? (at least 200 word).

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    "Interest rates, recession and wars all represent sources of systematic risk because they affect the entire market and cannot be avoided through diversification. Whereas this type of risk affects a broad range of securities, unsystematic risk affects a very specific group of securities or an individual security. Systematic ...

    Solution Summary

    The solution discusses what is the difference between systematic and unsystematic risk.