Question 1 (14 marks)

Classify the following events as mostly systematic or mostly un-systematic. Is the distinction clear in every case?

1. Short term interest rates decrease expectantly.

2. The interest rate a company pays on its short term debt borrowing is increased by the bank.

3. Oil prices expectantly decline.

4. An oil tanker runs aground creating a large oil spill.

5. A major manufacturing company loses a multimillion dollar product liability suit.

6. The Supreme Court of Canada decision substantially broadens producer liability for injuries suffered by product users.