Solution-Explain and indicate a systematic or unsystematic

Explain and indicate a systematic or unsystematic risk

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Reference no: EM132950610

When people start eating healthy, there is a tendency that soft drink and fast-food industries will have some reduction on their revenue. On the other hand, firms in Airline and petroleum industries would not be affected by the "heathy trend" as fast food and soft drink industries.

During COVID 19, many Australian business suffer Bankruptcy because of smooth functioning of financial market and deep recession.
Change of government policy resulting in major fiscal policy changes such as new tax legislation, reduction or increase in tax rates and incidence.

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Problem 1: Explain whether the events above indicate a systematic or unsystematic risk? Can those situations above be diversified and/or managed? Explain.

Reference no: EM132950610

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Explain and indicate a systematic or unsystematic risk

Reference no: EM132950610

Reference no: EM132950610

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