Question

For each of the following events, identify whether it represents systematic risk or idiosyncratic risk a)...

For each of the following events, identify whether it represents systematic risk or idiosyncratic risk

a) Mortgage defaults rose by 10 percent in the United States.

b) Conflicts within oil-rich countries caused the price of crude oil to triple in the past year.

c)  Your favorite restaurant is closed by the county health department.

d) Freezing weather in Florida destroys the orange crop.

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Answer #1
a.mortgage defaults rose by 10 percent in the united states systematic
b. Conflicts within oil-rich countries caused the price of crude oil to triple in the past year. idiosyncratic
c. Your favorite restaurant is closed by the county health department. idiosyncratic
d. Freezing weather in Florida destroys the orange crop. idiosyncratic
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