Which of the following accurately describes unsystemic risk? Unsystemic risk is correlated to investing in only...
Which of the following accurately describes unsystemic risk?
Unsystemic risk is correlated to investing in only one company or security.
All of these answers.
A company losing a lawsuit which creates a massive legal liability is an example of unsystemic risk.
Unsystemic risk can be diversified away.
A potential merger is announced between Company A and B. Which of the following is a potential response to that announcement?
Nothing happens because analysts picked up on signals prior to the announcement that the merger would occur.
Company A's stock is downgraded, because analysts believe the merger signals A is financially weak.
Company A's stock is upgraded because analysts believe the merger will increase its marketshare.
All of these answers.
In which of the following ways can technical analysts use a company's announcements, news and returns to determine whether to buy the company's stock?
All of these answers.
They can use the returns to study the company's growth patterns and stock price fluctuations.
They can review the company's press releases to evaluate the company's managerial competence.
They can review the company's press releases to analyze its competitive advantages.
Homework Answers
Q. 1). Answer :- Option B). All of these answers.
Explanation :- Unsystematic risk refers to risk unique to a particular company or industry. It is avoidable through diversification. This is the risk of price change due to the unique circumstances of a specified security as opposed to the overall market. This risk can be virtually eliminated from investor's portfolio through diversification.
Q. 2). Answer :- Option D). All of these answers.
Q. 3). Answer :- Option B). They can use the returns to study the company's growth patterns and stock price fluctuations.
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Which of the following accurately describes unsystemic
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please I need just the answers. no need to show working 2. Which type of risk...
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please I need just the answers. no need to show
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