8. Which of the following risks of a stock are likely to be unsystematic, diversifiable risks and...
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8. Which of the following risks of a stock are likely to be unsystematic, diversifiable risks and which are likely to be systematic risks? Which risks will affect the risk premium that investors will demand?
a. The risk that the founder and CEO retires
b. The risk that oil prices rise, increasing production costs
c. The risk that a product design is faulty and the product must be recalled
d. The risk that the economy slows, reducing demand for the firm's products
e. The risk that your best employees will be hired away
f. The risk that the new product you expect your R&D division to produce will not materialize
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292018409
3rd Global Edition
Authors: Berk, Peter DeMarzo, Jarrad Harford
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