A "risky" asset will earn a rate of return close to that of "riskless" assets if its risk is:

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Diversifiable risk refers to the specific risk associated with individual assets that can be mitigated through diversification. When an asset's risk is diversifiable, it means that by combining it with other assets in a well-diversified portfolio, the overall risk can be reduced to the point where the portfolio's return could approach that of riskless assets, assuming the diversifiable risks are effectively managed.

A "Risky" Asset Will Earn a Rate of Return Close