We have studied that assets have two kinds of risk
We have studied that assets have two kinds of risk: idiosyncratic
(specific to the asset) and systemic (common to all assets). Why is the purpose of separating idiosyncratic risk from systemic risk?
When you purchase an asset, do you consider the idiosyncratic risk from systemic risk? Given that systemic risk can be reduced/eliminated by diversification, how much value do you place on diversification?