Question: 24 a) Explain some of the key differences between systematic and unsystematic risk with examples for each. ( 5) b) You have decided that you

24 a) Explain some of the key differences between systematic and unsystematic risk with examples for each. (5)

b) You have decided that you would like to own some shares of Martin & Miller (M&M) but need an expected 15% rate of return to compensate for the perceived risk of such ownership. What is the maximum you are willing to spend today to buy one share of M&M stock if the company pays a constant $3 annual dividend per share? (5)

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