Question

Classify each of the following as systematic (S) or unsystematic (U) and determine whether the information will cause a change in prices by indicating one of the following: no change (N), increase (I), decrease (D). If you would like to justify your response, you may do so in the space below the table.

		S/U	N/I/D
	The Trump Administration released a list of $200 billion of Chinese goods that will be subject to tariffs.
	Analysts increase earnings and dividend forecasts for GE stock.
	Amazon confirms its plans to buy PillPack so that it can begin to sell pharmaceuticals.
4	Interest rates rose by .5%.

Answer 1

I have answered the question below

Please up vote for the same and thanks!!!

Do reach out in the comments for any queries

Answer:

Systematic risk, also known as "market risk" or "un-diversifiable risk", is the uncertainty inherent to the entire market or entire market segment. thse risk is arise due to market factor that is outside the company and if affect the whole market.

Diversifiable risk also called unsystematic risk is company specific risk that can be reduce through diversification of investment. this type of risk is specific to particular firm.

1)

The tariffs will applicable on a wide range of sectors hence market or systematic risk

2)

Since this is for a particular stock it is unsystematic risk

3)

Since the acquisition is with a particular company it is unsystematic risk

4)

It affects the entire market. Hence systematic risk