An example of systematic risk would be if the stock of the major airlines dropped after two
airplanes crashed on the same day, making many passengers too nervous to ﬂy.

Question

Quizplus · Accepted Answer

Systematic risk affects the entire market or a large segment of the market, such as economic recessions or interest rate changes. The scenario described is an example of unsystematic risk, which is specific to a particular company or industry.

An Example of Systematic Risk Would Be If the Stock