Question: Explain the differences between systematic and unsystematic risk. Describe the potential impacts of the following types of financial risk on the company based on the

Explain the differences between systematic and unsystematic risk.

 Describe the potential impacts of the following types of financial risk on the company based on the quarterly report:

  • Interest rate risk
  • Economic risk
  • Credit risk
  • Operational risk
  • Lower Growth Impact: Explain the impact that a lower growth in sales could have on the dividend policy and retained earnings for the company based on the quarterly report.
  • Higher Growth Impact: Explain the impact that a higher growth in sales could have on the dividend policy and retained earnings for the company based on the quarterly report.

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Answer Systematic and Unsystematic Risk Systematic risk Systematic risk also known as market risk is the risk that affects the entire market or a broad economic sector It is the risk that cannot be di... View full answer

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