Pervasive risks vs. Systematic risks (page 2-12). He lists them separately
- but aren't systematic risks pervasive by definition? Also, "market risk"
which is listed under systematic risks is described as "Another pervasive
risk associated...".
The 96 exam had a question (#14) which gets at this confusion!
Why do the authors sort the risks this way? Are his pervasive risks
("purchasing power risk", "political risk", and "exchange risk") also
systematic? And are all his systematic risks pervasive - or only market
risk?
Any ideas on how an exam question should be answered?
Betsy Branagan
bbranagan.arbella@mcimail.com
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