Systematic or Unsystematic risk
Explain whether each of the following is systematic or unsystematic risk using references to the required background readings:
a. There is a large recession.
☐Systematic Risk
☐Unsystematic Risk
Explain:
b. It is discovered that a company lied about its earnings and it is not nearly as profitable as they claimed.
☐Systematic Risk
☐Unsystematic Risk
Explain:
c. The CEO of a successful company gets arrested for some serious crimes, and the company has trouble finding a good replacement.
☐Systematic Risk
☐Unsystematic Risk
Explain: