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.

Answer rating: 100% (QA)

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 the full answer