We can distinguish between a security's ________, which can be washed away by mixing the security with other securities in a diversified portfolio, and its ________, which cannot be eliminated by diversification.

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Systematic risk refers to factors that affect the entire market, such as interest rates or macroeconomic conditions, and cannot be diversified away. Unsystematic risk, on the other hand, is specific to an individual security or company and can be diversified away by investing in a portfolio of different securities.

We Can Distinguish Between a Security's ________, Which Can Be