Question based on the picture attached. (c) Classify each of the following events as a source of systematic or unsystematic risk with explanations: i. After the current election, Donald Trump is no more the President of United States of America and Joe Biden is appointed to take over his place. ii. Harlie Davidson is convicted of insider trading and is sentenced to 10 years of prison. iii. An OPEC embargo raises the world market price of oil. iv. A major consumer product, Ribena loses a product liability case due to misleading Vitamin C advertisement. v. The Supreme Court rules that no employer can layoff an employee without first giving 30-days notice.
Question based on the picture attached. (c) Classify each of the following events as a source of systematic or unsystematic risk with explanations: i. After the current election, Donald Trump is no more the President of United States of America and Joe Biden is appointed to take over his place. ii. Harlie Davidson is convicted of insider trading and is sentenced to 10 years of prison. iii. An OPEC embargo raises the world market price of oil. iv. A major consumer product, Ribena loses a product liability case due to misleading Vitamin C advertisement. v. The Supreme Court rules that no employer can layoff an employee without first giving 30-days notice.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question based on the picture attached.
(c) Classify each of the following events as a source of systematic or unsystematic risk with explanations:
i. After the current election, Donald Trump is no more the President of United States of America and Joe Biden is appointed to take over his place.
ii. Harlie Davidson is convicted of insider trading and is sentenced to 10 years of prison.
iii. An OPEC embargo raises the world market price of oil.
iv. A major consumer product, Ribena loses a product liability case due to misleading Vitamin C advertisement.
v. The Supreme Court rules that no employer can layoff an employee without first giving 30-days notice.
Transcribed Image Text:The following shows the expected percentage returns on three stocks over the next six years:
Stock
Percentage Return (%)
Year
2.
3
4
A
10
6
8
12
15
В
8
4
4.8
6.4
9.6
12
10
12
10
6.
6.
Required:
(i)
(ii)
(iii)
Find the expected return for each of the stock.
Compute the variance and standard deviation for stock A, B and C. Show your working.
Justify how can you minimize the risk of the above combination of stocks.
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