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Texan Teakettles is head-quartered near Lubbock, Texas. Texan's warehouse was just hit by a massive tornado, which will cost several thousand dollars in repair and

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Texan Teakettles is head-quartered near Lubbock, Texas. Texan's warehouse was just hit by a massive tornado, which will cost several thousand dollars in repair and downtime. What kind of risk is this, and according to CAPM should investors be compensated for bearing this risk? Systematic risk: No, investors do not need to be compensated for this risk Systematic risk: Yes, investors need to be compensated for this risk Firm-specific risk: No, investors should not be compensated for this risk Firm-specific risk: Yes, investors need to be compensated for this risk

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