Differences between systematic risks and unsystematic risks.

Due 12/23
Referring to Corporate Finance, Ch. 10: Risk and Return - Lessons from Market History, Ch. 11: Return and Risk — The Capital Asset Pricing Model, Ch. 13: Risk, Cost of Capital, and Valuation, Ch. 25: Derivatives and Hedging Risk
(CHAPTERS 10,11,13, & 25 as Resource.)
Write a 900 word analysis that includes the following:

1. Business risk is typically described as the exposure a company or organization has to a number of factors that may lower the company’s profits, which may trigger a business failure. Although there are many business risks, two major risk categories are systematic risks and unsystematic risks.
   Respond to the following:
   • Explain the differences between systematic risks and unsystematic risks.
   • Briefly discuss two sources of systematic risks and two sources of unsystematic risks.
   Format required for assignment is APA: (1) in-text citations; and (2) reference list of scholarly sources.