Chapter 11, Problem 2CQ

Systematic versus Unsystematic Risk Classify the following events as mostly systematic or mostly unsystematic. Is the distinction clear in every case?

1. a. Short-term interest rates increase unexpectedly.
2. b. The interest rate a company pays on its short-term debt borrowing is increased by its bank.
3. c. Oil prices unexpectedly decline.
4. d. An oil tanker ruptures, creating a large oil spill.
5. e. A manufacturer loses a multimillion-dollar product liability suit.
6. f. A Supreme Court decision substantially broadens producer liability for injuries suffered by product users.