a)
To discuss: The type of risk involved when a main production plant has shut down due to a tornado.
Introduction:
Risk refers to the movement or fluctuation in the value of an investment. The movement can be positive or negative. A positive fluctuation in the price benefits the investor. The investor will lose money if the price movement in negative.
b)
To discuss: The type of risk involved when there is a decrease in the demand of product of the firm.
Introduction:
Systematic risk refers to the market-specific risk that affects all the stocks in the market.
c)
To discuss: The type of risk involved when the best employees are hired away.
Introduction:
Unsystematic risk refers to the company-specific risk that affects only the individual company.
d)
To discuss: The type of risk involved when there is a new product.
Introduction:
Unsystematic risk refers to the company-specific risk that affects only the individual company.
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Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
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