11.4 Systematic versus Unsystematic Risk. Indicate whether the following events might cause share prices in general to change, and whether they might cause Big Widget Ltd's share price to change. a. The government announces that inflation unexpectedly jumped by 2% last month. b. Big Widget's half-yearly earnings report, just issued, generally fell in line with analysts' expectations. c. The government reports that economic growth last year was at 3%, which generally agreed with most economists' forecasts. d. The directors of Big Widget die in a plane crash. e. The government passes changes to the tax laws that will increase the corporate tax rate. The legislation had been debated for the previous six months. LO 11.3

11.4 Systematic versus Unsystematic Risk. Indicate whether the following events might cause share prices in general to change, and whether they might cause Big Widget Ltd's share price to change. a. The government announces that inflation unexpectedly jumped by 2% last month. b. Big Widget's half-yearly earnings report, just issued, generally fell in line with analysts' expectations. c. The government reports that economic growth last year was at 3%, which generally agreed with most economists' forecasts. d. The directors of Big Widget die in a plane crash. e. The government passes changes to the tax laws that will increase the corporate tax rate. The legislation had been debated for the previous six months. LO 11.3