10. The following is an example of the unsystematic risk in a stock : The Federal Reserve raises interest rates 1% Apple reports weaker than expected demand for their iPhone The US Jobs numbers come in lower than expected Swine Flu comes through and causes havoc in the US

10 B. In a well diversified portfolio __ risk can be pushed to near 0. Systemic Systematic Total Unsystematic

10. C. If Apple has a beta of 1.5, Walmart has a beta of 0.5, Tiffany's has a beta of 2.0, and Google has a beta of 1.0 -- according to CAPM, which company will earn the highest returns over the long run Apple Walmart Tiffany's All the same over the long run