Page 110 - AFM Integrated Workbook STUDENT S18-J19
P. 110

Chapter 6




               Diversification of unsystematic risk


                 As an investor increases the size of his portfolio, overall risk reduces.

























                             If the investor has approximately 25 well-chosen shares in his portfolio,
                             the unsystematic risk will be eliminated.

                             Systematic risk cannot be eliminated by diversification.













































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