Unformatted text preview: 14. Classify each of the following as an example of systematic or unsystematic risk: a. The labor unions at Caterpillar, Inc. declared a strike yesterday. Unsystematic risk b. Contrary to what polls predicted, the president was reelected. Systematic risk c. Disagreement about inflation policy leads to a fall in the euro relative to the dollar. Systematic risk d. The computer industry suffers lower profits because of aggressive pricing strategies on new desktop computers. Unsystematic risk e. Every Christmas selling season, there is a “hot” toy that many parents try to purchase for their child. Unsystematic risk...
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- Spring '11
- Accounting, systematic risk, unsystematic risk, Yi Chen