(Answered) Idiosyncratic and systematic risk

Economics

Problem: You are planning for retirement and must decide whether to purchase only your employer's stock for your 401(k) or, instead, to buy a mutual find that holds shares in the 500 largest companies in the world. From the perspective of both idiosyncratic and systematic risk, explain how you would make your decision. Describe your answer and give examples.

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Macroeconomics, Economics

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