Question 1:

a.What is 'systematic' risk and what is 'unsystematic' risk?

b.With citing reasons classify the following events as a source of systematic risk or unsystematic risk for Qantas Airlines:

i.The global COVID-19 pandemic.

ii.Australian government introduces very harsh carbon emission rules

iii.Closure of a major oil refinery in Australia results in a sharp rise in fuel cost

iv.The Reserve Bank of Australia reduces its cash lending rate to record low

v.A major strike by Qantas Pilots interrupts flight schedules

c.A financial advisor claims that a particular share earned a total return of 10% last year. During the year the share price rose $30 to $35. What dollar amount of dividend did the share pay?

d.AGL shares sold for $25 each last year and their total return during the past year was 20%. AGL has been paying $1.50 dividend every year. What would the shares be sold today?