Investors want their portfolio managers to completely diversify their portfolio, that is, eliminate all systematic risk.

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Investors typically want their portfolio managers to completely diversify their portfolio, in order to eliminate all systematic risk. This can be achieved through asset allocation and selecting a mix of investments with low or negative correlations. However, it is important to note that complete elimination of all risk is not possible, as there will always be some level of unsystematic or idiosyncratic risk in any portfolio.

Investors Want Their Portfolio Managers to Completely Diversify Their Portfolio