Podcast
Questions and Answers
What type of risk affects the entire market or a broad segment of it?
What type of risk affects the entire market or a broad segment of it?
- Inflation risk
- Interest rate risk
- Unique risk
- Market risk (correct)
How does high inflation impact companies?
How does high inflation impact companies?
- Increases profit margins
- Boosts consumer spending
- Decreases stock prices (correct)
- Lowers borrowing costs
Which factor can slow down economic growth due to higher borrowing costs?
Which factor can slow down economic growth due to higher borrowing costs?
- Stable profit margins
- Low inflation
- High-interest rates (correct)
- Increased consumer spending
What is the primary reason why diversification can help mitigate unique risk?
What is the primary reason why diversification can help mitigate unique risk?
Which type of risk is related to factors beyond individual companies' control?
Which type of risk is related to factors beyond individual companies' control?
How does high-interest rates impact consumer spending?
How does high-interest rates impact consumer spending?
Which type of risk affects individual companies or assets and cannot be easily diversified away?
Which type of risk affects individual companies or assets and cannot be easily diversified away?
How could lawsuits against a pharmaceutical company affect its stock price?
How could lawsuits against a pharmaceutical company affect its stock price?
What effect can a strike by workers at an automobile manufacturer have on the company's profitability?
What effect can a strike by workers at an automobile manufacturer have on the company's profitability?
How could winning a major government contract impact a technology company's stock price?
How could winning a major government contract impact a technology company's stock price?
What is one way in which a successful advertising campaign by a retail company can affect its stock price?
What is one way in which a successful advertising campaign by a retail company can affect its stock price?
Why is Unique risk also referred to as Non-Systematic Risk?
Why is Unique risk also referred to as Non-Systematic Risk?
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