Part III: News Events In this section, well take a look at some news events. In the textbook, we saw that there are systematic and non systematic risks. Lets identify examples of how systematic and non-systematic shocks may affect a stocks return. Q3.1 Search Google (or your search engine of choice) for the S&P 500: a) What news stories appear? (Please list 2 headlines) b) Are these positive or negative? c) What was the return on the S&P 500 today? d) On what date did you collect this data?

Q3.2 Use the Yahoo Finance screener to identify a stock that earned more than 10% return today and that has a market capitalization of at least 1 billion dollars. (Pick whichever you like if there are multiple) a) What is the name of the company? b) What is the ticker of the company? c) What is the return? d) If you search the news, what are 2 new stories for this company? e) In 20-30 words, why did the company have such a large return today? f) On what date did you collect this data?

Q3.3 Comparing the two types of risk: a) If you are a well-diversified investor, which news will be more important to you that from Q3.1 or Q3.2? b) What type of risk did the news in Q3.1 relate to? c) What type(s) of risk the news in Q3.2 relate to?