For each of the scenarios below, explain whether or not it represents a diversifiable or an undiversifiable risk. Please consider the issues from...

. For each of the scenarios below, explain whether or not it represents a diversifiable or an undiversifiable risk. Please consider the issues from the viewpoint of investors. Explain your reasoninga. A large fire severely damages three major U.S. cities.b. A substantial unexpected rise in the price of oil.c. A major lawsuit is filed against one large publicly traded corporation.2. Use the CAPM to answer the following questions:b. Find the Risk-Free Rate given that the Expected Rate of Return on Asset "j" is 14%, the Expected Return on the Market Portfolio is 12%, and the Beta (b) for Asset "j" is 1.5.c. What do you think the Beta (β) of your portfolio would be if you owned half of all the stocks traded on the major exchanges? Explain.3. In one page explain what you think is the main 'message' of the Capital Asset Pricing Model to corporations and what is the main message of the CAPM to investors?