Beta coefficient important when constructing portfolio

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Reference no: EM131315840

EXPLAIN FULLY! at least 200 words each!

1) Are portfolio managers willing to pay a premium for securities that reduce the systematic (market) risk of their portfolios? If so, why pay a premium?

2) What makes a beta coefficient important when constructing a portfolio?

3) If portfolio risk equals market risk, can the portfolio risk be diversifiable?

Reference no: EM131315840

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