Difference between systematic and unsystematic risk

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Assignment:

1- Please describe the difference between systematic and unsystematic risk. In doing so, provide 4 examples of each type of risk.

2-From your perspective, explain the differences between insuring and gambling. In doing so, contrast the intent of each activity.

3- Imagine that the East Coast and Midwest recently experienced a 2- week period of unbearable cold weather and wind chill. During such a cold period do you believe commercial business owners should be required to take measures to prevent pipes from freezing (i.e. pipe insulation, turn on faucets, etc.) in order to maintain their insurance coverage? Explain why or why not.

4- Almost all insurance companies have a reinsurance program in place. Provide 4 reasons why it is important for a policy holder to make sure that her insurance policy is backed by a strong reinsurance company.

5-Suppose that you purchased your home in 2014 and believe that, based upon recent comparable home sales in your vicinity, your home has a market value of $675,000. You decide to put your home on the market for $720,000 to allow room for future negotiation towards your desired selling price of $6?5,000. After several days, you receive a text message from your broker informing you that prospective buyers have been balking at making you an offer as they have seen that Zillow is valuing your house online for only $600,000. Explain whether you have a right to sue Zillow and, if so, under what liability law(s).

Reference no: EM133900477

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