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Systematic versus Unsystematic Risk [ LO 3 ] Classify the following events as mostly systematic or mostly unsystematic. Is the distinction clear in every case?
Systematic versus Unsystematic Risk LO Classify the following events as
mostly systematic or mostly unsystematic. Is the distinction clear in every case?
a Shortterm interest rates increase unexpectedly.
b The interest rate a company pays on its shortterm debt borrowing is increased
by its bank.
c Oil prices unexpectedly decline.
d An oil tanker ruptures, creating a large oil spill.
e A manufacturer loses a multimilliondollar product liability suit.
f A Supreme Court decision substantially broadens producer liability for injuries
suffered by product users.
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