Description
For this assignment, you will write a 3-4 page essay on market risk and diversifiable risk, the differences between them, how these risks apply to a portfolio, and why understanding these risks is important for both investors and businesses.
Instructions
Write a 3-4 page essay that answers the following questions:
1. Why is understanding market risk important to a stock portfolio? Consider using your own investment portfolio as an example.
2. How would diversifiable risk affect an investor’s potential investment mix?
3. How does risk and return relate to the market and diversifiable risk?
Writing Requirements
Your essay must be 3-4 pages long.
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