Datacom Institute of Computer Technology Systematic and Unsystematic Risks
Consider the following two events: (a) a bank loses $1 billion from an unexpected lawsuit relating to its transactions with a counterpart and (b) an insurance company loses $1 billion because of an unexpected hurricane in Texas. Suppose that you have the same investment in shares issues by both the bank and the insurance company. Which loss are you more concerned about? Why? write 3-4 paragraphs,
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