Diversifiable and Non-diversifiable Risk and the Advanced Choice under Ambiguous or Uncertain Conditions

The objective of this paper is to revisit the concepts diversifiable and non-diversifiable risk, expound portfolio risk in two ways: mathematically first, with practical examples, second It also explains lending borrowing at risk-free rate return, addition juxtaposing diversification method measure unsystematic against utilizing Beta systematic risk. Furthermore, it briefly examines mathematical simulation sensitivity analysis, delineates technique for choices under ambiguity, uncertainty. implication conceptual offer a further clarification theoretical terms, especially those which might be interchangeable financial economic literature, show, by terms’ applicability.