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Carnival Corp. is a travel and leisure company, operating over 100 vacation cruise ships. Please provide concise answers to the following four questions:
1. What's an example of a market risk faced by Carnival?
2. What's an example of an idiosyncratic risk faced by Carnival?
3. Should a diversified investor in Carnival worry about neither, one (which?), or both? Explain.
4. Would your answer to #3 change if the investor had a significant, large share of her wealth in Carnival? Explain.
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