It would ignorant and destroy value for Starbucks management to attempt to insulate the company from all risk.
True or False
Which one of the following is the best example of unsystematic risk
a. Inflation exceeding market expectations
b. a warehouse fire
c. Decrease in corporate tax rates
d. Decrease in the value of the dollar
e. Increase in consumer spending
The management of Starbucks only lists and describes the systematic risks that the company is exposed to in the 10-K becasue the other risks are no the
responsibility of management.
Which of the following terms can be used to describe unsystematic risk
1. asset specific risk
2. diversifiable risk
3. market risk
4 unique risk
a. 1and 2
b 2 and 3
c. 1 2 and 4
d. 2 3 and 4
e. 1 2 3 and 4
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