Part 1

1) Identify and explain three firm-specific risks that a company like Sasol faces ?

2) What are thetwo types of companies that are likely to provide shareholders with diversification protection from the three risks identified from question 1 ?

3) What are the three macroeconomic or market risks that Sasol faces ?

Part 2

1) Based on your analysis of Part 1 of 2 on question 1 and 3 in which are identified different types of risks, explain and justify the risks that can be diversified ?