Define what is systematic risk and unsystematic risk

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Ms Brown has an investment portfolio comprising Australian shares. At a meeting with her investment advisor she requests explanations of systematic risk and unsystematic risk:

Required:

Problem 1: Define systematic risk and unsystematic risk, and an explanation of factors that are responsible for the two types of risk.

Problem 2: Explain the reason an investor should not expect to be rewarded for the unsystematic risk element in a share portfolio?

Reference no: EM132817944

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