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Principal of diversification

• Highly diversified portfolios will have negligible unsystematic risk. In other words, unsystematic risks disappear in portfolios, and only systematic risks survive.

 
 Embedded terms in definition
 Risk
Systematic risk
Systematic
Unsystematic risk
Will
 
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Being busy does not always mean real work. The object of all work is production or accomplishment and to either of these ends there must be forethought, system, planning, intelligence, and honest purpose, as well as perspiration. Seeming to do is not doing. Thomas Alva Edison

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