Q9: What is the difference between un-systematic and
systematic risk? Show graph! Give Examples.
Unsystematic Risk: Systematic Risk:
Graph:
--What type of risk can be diversified away? How would
you do this? What statistical measures would you have to look at?
Explain!
what is the difference between idiosyncratic and
systemic risk? please give an example of each. which one can be
eliminated through diversification? how do we measure a company's
systemic risk?
6.a) What is the difference between systemic risk and
idiosyncratic risk? Which type of risk can be almost eliminated
through diversification? Who will be able to mitigate the risk and
how?
What is “moral hazard” and ‘adverse selection”?
What are the cause and remedies of the financial crisis in
2008-09?
a) Explain the difference between systematic risk and
unsystematic risk.
b) What are some examples of each?
c) Assume you are considering an investment in a new medical
company that has developed a tiny robot that enters the body and
(hopefully) destroys cancer tumors. If it works in clinical trials,
the company will have cured cancer (and be very valuable); if it
fails in clinical trials, the robot will be killing patients (and
the company will be worthless). Under the...
What is the difference between microeconomics
and macroeconomics? Provide an example of
each.
Price discrimination. How can this be a good
thing for you personally?
Illustrate (draw) and explain the
Laffer Curve. Where are we currently as a nation (in your opinion)
on the Laffer Curve?