BANKING AND FINANCE.

Running head: BANKING AND FINANCE
Banking and Finance
Name of the Student:
Name of the University:
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BANKING AND FINANCE
1
Table of Contents
Indicating how the inquiry affected systematic risk and unsystematic risk:..............................2
Indicating how new reported from Royal Commission move the share price of AMP, CBA,
and NAB:...................................................................................................................................2
Reference:..................................................................................................................................5

BANKING AND FINANCE
2
Indicating how the inquiry affected systematic risk and unsystematic risk:
The inquiry of the Royal Commission had a direct impact on the systematic and
unsystematic risk of the financial institutions listed in Australia. Royal commission was
appointed for detecting the malpractices that have been used by the financial institutions,
where reports of the unethical activities have directly affected both the systematic and
unsystematic risk of the companies (Financialservices.royalcommission.gov.au 2019). The
charges of corruptions raise the concern for the investors regarding the ethical activities of the
company, which increase the systematic risk or the market risk, as investors will be panic
with the relevant news. In addition, the unsystematic risk increases, as investor are concerned
regarding their future continuity. The royal commission will impose fines on the financial
instructions, which will increase the unsystematic risk of the companies.
Indicating how new reported from Royal Commission move the share price of AMP,
CBA, and NAB:
Figure 1: Share price of AMP after report of Royal commission
(Source: Au.finance.yahoo.com 2019)