Question: Question 4. Short Answer F. Consider a day on which the S&P/TSX 60 Index an index of 60 large stocks, rose 59 points. On that

Question 4. Short Answer F. Consider a day on which the

S&P/TSX 60 Index an index of 60 large stocks, rose 59 points.

Question 4. Short Answer F. Consider a day on which the S&P/TSX 60 Index an index of 60 large stocks, rose 59 points. On that same day. Alcan, which is one of the stocks in the Index announced some unexpectedly bad news. The price of Alcan declined S10 on that same day. Using this example discuss systematic risk, portfolio diversification and asset specific risk. (10 maks) Question 4: Short Answer F: Consider a day on which the S&P/TSX 60 Index, an index of 60 large stocks, rose 59 points. On that same day, Alcan, which is one of the stocks in the Index, announced some unexpectedly bad news. The price of Alcan declined $10 on that same day. Using this example, discuss systematic risk, portfolio diversification, and asset specific risk. (10 marks)

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