Beta coefficient important when constructing a portfolio

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Reference no: EM131328178

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?

Describe the each question 300 words.

Reference no: EM131328178

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