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.
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 |
For each of the following events, identify whether it represents systematic risk or idiosyncratic risk a)...
for each of the following risk, indicate whether the risk is systematic risk or idiosyncratic risk for a firm: a. risk of the ceos death b. risk of a global pandemic c. risk of an earthquake in the city of a firms head quarters d. risk of a nuclear war starting between any two nations in the world e. risk of oil becoming free of cost
11 Explain how (if at all) each of the following events affects the location of a country's production possibilities curve: LO5 a. The quality of education increases. b. The number of unemployed workers increases. c. A new technique improves the efficiency of extracting copper from ore. d. A devastating earthquake destroys numerous production facilities. 7, Indicate whether each of the following statements applies to microeconomics or macroeconomics: LO3 a. The unemployment rate in the United States was 9.0% in April...