Question
Identify each of the following risks as most likely to be systematic risk or unsystematic risk, provide brief explanation of why the risk is likely
Identify each of the following risks as most likely to be systematic risk or unsystematic risk, provide brief explanation of why the risk is likely systematic/unsystematic:
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The risk that your main production plant is shut down due to a tornado.
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The risk that the economy slows, decreasing demand for your firms products.
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The risk that your best employees will be hired away.
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The risk that the new product you expect your R&D division to produce will not materialize.
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The risk that there may be a World War III in the coming year leading to shut down of global financial markets during the period of war
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The risk that the Federal Reserve announces immediate shut down of all the stimulus packages and bond buying programs (that is, there shall be no more financial market intervention by the Fed, and it will concentrate on just setting the short term interest rates)
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