@bbtheodorus1 asked 8 months ago.

Is it possible to reduce the level of systematic risk in a portfolio? if so, how? if not, why not?

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@Juliann answered 7 months ago.

Systematic risk refers to the risk inherent to the entire market or market segment. ... This type of risk is both unpredictable and impossible to completely avoid. It cannot be mitigated through diversification, only through hedging or by using the correct asset allocation strategy.

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@clarkee answered 7 months ago.

 Asset allocations can be indispensible method of reducing Systematic risk. When investing in futures, equities, bonds etc., investors always carry the risk of a change in interest rates or exchange rates which could in turn reduce the value of their portfolio. Mitigating the risk of this happening can be attained through hedging.

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@jack answered 8 months ago.

I would start by saying that it’s almost impossible to reduce your portfolio’s level of systematic risk completely. There will always be some level of risk that you can’t control. However, you can reduce it by using a variety of techniques.
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