Which of the followings is an example of the systematic risk. Winter storm in New York...

Which of the followings is an example of the systematic risk.

Winter storm in New York area
Hurricane hit Alabama
Strike in auto industry
Pandemic spreading across the country

Solutions

Expert Solution

Ans) b Hurricane hit Alabama

Systematic risk include natural disaster,weather events,inflation etc where unsystematic risk include company mismanagement, supply chain issues, new competitor.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

6. Which of the following is an example of systematic risk? (a) The earnings of a...

6. Which of the following is an example of systematic risk? (a) The earnings of a company drop. (b) The chief executive officer resigns. (c) A legal suit against a company for environmental pollution. (d) Changes in the level of interest rates. (e) The development of a new product line. 7. Suppose a company had earnings per share of $2 over the past year. The industry average PE ratio is 10. Use this information to value this company’s stock price....

Differentiate between systematic risk and Non-systematic Risk

Which of the following statements is false? Systematic risk is a market-wide source of risk and...

Which of the following statements is false? Systematic risk is a market-wide source of risk and is non-diversifiable. The beta estimate of the market portfolio is one. The yield to maturity is less than the coupon rate of a premium bond. Assuming no IRR problems, if IRR > cost of capital, the NPV estimate is negative. The reinvestment rate of the MIRR is the cost of capital.

Types of Risk Explain the differences between total risk, unsystematic risk, and systematic risk. Identify which...

Types of Risk Explain the differences between total risk, unsystematic risk, and systematic risk. Identify which risk is measured by standard deviation and which is measured by beta. Please explain indepth.

Which type of risk can be diversified away? Systematic risk. Market risk. Inflation risk. Idiosyncratic risk....

Which type of risk can be diversified away? Systematic risk. Market risk. Inflation risk. Idiosyncratic risk. More than one of the these types of risk can be diversified away.

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?

Which of the following statements concerning risk are correct? I. Systematic risk is measured by beta....

Which of the following statements concerning risk are correct? I. Systematic risk is measured by beta. II. The risk premium of a risky asset increases as diversifiable risk increases. III. Systematic risk is another name for nondiversifiable risk. IV. Diversifiable risks are systematic risks you cannot avoid. A.I and III only B.II and IV only C.I and II only D.III and IV only E.I, II, and III only

Discuss the difference between a stock’s systematic (market) risk and non-systematic (unique) risk?

Which of the following is true? A. A stock’s systematic risk can be diversified away by...

Which of the following is true? A. A stock’s systematic risk can be diversified away by adding it to a portfolio. B. Investors should not be compensated for bearing nondiversifiable risk. C. Beta is a measure of the nonsystematic risk of an asset. D. None of the answers are correct.

1. Which of the followings is not an example of an authorised deposit-taking institution (ADI)? Select...

1. Which of the followings is not an example of an authorised deposit-taking institution (ADI)? Select one A. Superannuation fund B. Credit Union C. None of the above D. Building society 2. The primary regulator of the commercial banks, credit unions, and building societies in Australia is A. The Australian Securities and Investments Commission B. The Reserve Bank of Australia C. The Federal Treasury D. The Australian Prudential Regulation Authority

Subjects