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In: Finance

Give a current example of systematic risk for the U.S. in 2020. What kind of actions...

Give a current example of systematic risk for the U.S. in 2020. What kind of actions could reduce your exposure to this risk?

Solutions

Expert Solution

Systematically in United States in 2020 is related to RISK OF AN IMPENDING RECESSION and it is a risk related to change of economic cycles and incoming recessionary economic cycle & it should be leading to lower growth and lack of demand in the market.

Company can be taking various types of proactive measures like cutting up on its debt capital and cutting upon its cost and focusing upon the concentration strategy in order to maximize the profits from those segments which are better established and cutting up on the unnecessary risk and unnecessary expenditure so this will help the company survive and sustain through these adverse economic scenario of impending recession and recessionary cycles and get through it.


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