24 a) Explain some of the key differences between systematic and unsystematic risk with examples for each. (5)

b) You have decided that you would like to own some shares of Martin & Miller (M&M) but need an expected 15% rate of return to compensate for the perceived risk of such ownership. What is the maximum you are willing to spend today to buy one share of M&M stock if the company pays a constant $3 annual dividend per share? (5)