the risk premium for an individual security is based on Diversifying type of risk.
Diversifying your investments reduces the amount of risk you face in order to optimize your profits. Although certain risks, such as systemic hazards, cannot be avoided, you may hedge We diversify our investments among diverse firms and assets that are not susceptible to the same risks because the future is very uncertain and markets are constantly changing. Diversification is not intended to boost profits. against unsystematic risks, such as commercial or financial risks.
Diversifying your investments reduces the amount of risk you face in order to optimize your profits. Although certain risks, such as systemic hazards, cannot be avoided, you may hedge against unsystematic risks, such as commercial or financial risks. Because the future is very uncertain and markets are always changing, we diversify our investments among diverse firms and assets that are not subject to the same risks. Diversification is not intended to maximize returns.
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