Question #1: (1 point)

Clearly describe the differences between Total Risk, Unique/Firm-Specific/Idiosyncratic Risk, and Market/Beta/Non-Diversifiable Risk. (.25)

For two dissimilar companies (pick 2 real world ones):

give an example for each firm of a unique risk event that affects it and (.25)

an example of a market risk event that affects both. (.25)

Explain why the degree of market risk between the two companies will be different. (.25)