FINA Note 2: Capital Asset Pricing model CAPM correctly answered to pass 2023

FINA Note 2: Capital Asset Pricing model CAPM correctly answered to pass 2023Risk that comes from the general economy such as the business cycle, inflation, interest rates, and exchange rates - correct answer Market/Systematic risk risk that affects only a specific firm such as Apple's success in the design and production of new iPad and iPhone, personnel changes (e.g.Steve Jobs passed away), etc - correct answer Firm-specific/unsystematic risk -The Fed may announce to raise interest rate tomorrow. Standard & Poor's may downgrade the U.S. credit rating from AA+ to AA. - correct answer •Which of the followings represent systematic risk? -The Fed may announce to raise interest rate tomorrow. -Tim Cook may resign from the CEO position of Apple next month. -Ford may recall all of its 2015 Fusion due to safety problem. -Standard & Poor's may downgrade the U.S. credit rating from AA+ to AA. -when you include additional securities in your portfolio, e.g.Ford and Apple