BUSINESS FINANCE

Business Finance

Business Finance

1.

a.

Diversifiable risk

The entire economy will not be affected by a large fire in three major US cities. In fact some companies in cities not affected by fire will benefit as they will meet the demand not being met by companies in the three cities that are affected by the fire.

b.

Undiversifiable risk

A substantial unexpected rise in the price of oil will increase the inflation rate that will affect the entire economy and all the companies

c.

Diversifiable risk

The entire economy will not be affected; in fact One company will be affected and the similar ones in the same ...