Discuss systematic risk and portfolio diversification

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Reference no: EM133433817

Question: Consider a day on which the S&P/TSX 60 Index, an index of 60 large stocks, rose 59 points. On that same day, Tesla, which is one of the stocks in the Index, announced some unexpectedly bad news. The price of Tesla declined $10 on that same day. Using this example, discuss systematic risk, portfolio diversification, and asset specific risk.

Reference no: EM133433817

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