Why is total risk not important to rational investors

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Question: We routinely assume that rational investors are risk-averse return-seekers; i.e., they like returns and dislike risk. If so, why do we contend that only systematic risk is important? (Alternatively, why is total risk not important to rational investors, in and of itself?) The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132075751

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