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/biz/ - Business & Finance

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>> No.56402066 [View]
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56402066

>>56402013
Again, you know nothing about finance. The only decision that risk aversion informs for a passive investor is the allocation between the risk-free security & market portfolio. Individual stock risks (e.x. Capital restructuring, lawsuits, R&D, death of a key figure) are diversified away by holding a properly-weighted basket of negatively correlated securities. Investors are only exposed to systematic risk. Here bro, maybe this picture will help you understand..

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