Systematic risk evaluates the probability and extent of negative consequences to the larger body. For example, the government has a record of intervening in the event of a probable bank failure; the government’s larger concern is the negative impact on bank customers. Some call this a government bail-out. Discuss the effect on stock market investor confidence should bank customers, individuals and businesses alike, lose access to savings and undergo a loss of future purchasing power.
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annuity is the financial situation where individuals invest and get a bonuses to their money as it matures. this will have effect to the stock market investor who has invested in a bank which has been put under receivership since he will not have any benefits accruing to his investment amount since their are no customers and since this annuities depend on profits from the customers of the bank. thus the investor will not be get an accrueed benefit hence a loss to his investment to the bank.
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Dec 19th, 2015
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