Which of the following is an example of unsystematic risk?
A) rising prices and volatile currencies
B) the expansion of a firm into global markets
C) sagging global economies
D) the geopolitical uncertainty around the world

Question

Quizplus · Accepted Answer

Unsystematic risk refers to risks that are specific to an individual company or industry, rather than affecting the entire market. The expansion of a firm into global markets is an example of unsystematic risk because it is specific to that company and its operations, and is not necessarily a risk faced by all companies.

Option A (rising prices and volatile currencies), C (sagging global economies), and D (geopolitical uncertainty around the world) are examples of systematic risks, as they affect the entire market and are not specific to any one company or industry.

Which of the Following Is an Example of Unsystematic Risk