Match each specific type of non-systematic risk to the corporate scenario that best illustrates it.
- Business RiskA software provider experiences declining revenues after losing a primary enterprise contract to a competitor.
- Credit RiskA municipal issuer fails to make a scheduled semi-annual interest payment due to fiscal deficits.
- Liquidity RiskAn investor holding an obscure private placement must offer a deep price discount to find an immediate buyer.
- Regulatory RiskA beverage manufacturer experiences narrowed profit margins following the enactment of a state sugar tax.
Cevap
Business Risk matches losing a key client contract; Credit Risk matches failing to make a scheduled municipal interest payment; Liquidity Risk matches offering a deep price discount to execute a quick transaction; Regulatory Risk matches experiencing narrowed profit margins from a new sugar tax.
Each scenario reflects a non-systematic risk factor unique to an issuer or industry: Credit Risk involves inability to service debt obligations; Business Risk reflects operational or competitive losses; Liquidity Risk reflects marketability constraints; and Regulatory Risk reflects legislative actions affecting operations.
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Anahtar Kavram
Non-Systematic and Credit Risks Identification