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Explain how options would achieve that goal

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Reference no: EM131216132

You recently wrote a recommendation to your friend outlying the ten stocks you would suggest they pick to create a diversified portfolio with the goal of eliminating unsystematic risk. Your friend now wants advice on reducing his exposure to systematic risk. In 2 pages:

• Explain how options would achieve that goal.
• Describe the concepts of options.
• Be sure to develop a strategy using options to mitigate risk.

Reference no: EM131216132

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