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Define systematic risk and unsystematic risk

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Reference no: EM132805370

Question - Ms Brown has an investment portfolio comprising Australian shares.

At a meeting with her investment advisor she requests explanations of systematic risk and unsystematic risk.

Required -

a. Define systematic risk and unsystematic risk, and an explanation of factors that are responsible for the two types of risk.

b. Explain the reason an investor should not expect to be rewarded for the unsystematic risk element in a share portfolio?

Reference no: EM132805370

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