For assessing whether or not and how much of an asset to hold,the important consideration is the asset's amount of

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The nondiversifiable risk, also known as systematic or market risk, is the risk that cannot be eliminated even by diversification. Therefore, this type of risk is the most important consideration when deciding how much of an asset to hold, as it affects the overall performance of the portfolio. Diversifiable risk, on the other hand, can be reduced by holding a diversified portfolio, and is therefore less relevant when making asset allocation decisions. Relative and absolute risk are not commonly used terms in finance.

For Assessing Whether or Not and How Much of an Asset