Systematic or unsystematic risk for investors

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1. How does the weather in the United States this year compare to normal? Who benefits and who loses because of this weather?

2. Does weather create systematic or unsystematic risk for investors? If you answered that weather creates systematic risk, explain why you would not be able to diversify away weather-related risk in a portfolio. If you answered that weather creates unsystematic (company-specific) risk, explain how you would eliminate weather-related risk in a portfolio.

Reference no: EM132427258

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