Which of the following is most apt to be unsystematic risk?
A) Inflation is rising faster than expected
B) Energy costs have suddenly increased dramatically
C) GDP is growing slower than anticipated
D) The value of the dollar declines suddenly
E) A group of gas stations goes bankrupt

Question

Quizplus · Accepted Answer

The bankruptcy of a group of gas stations is a specific event that is unique to that group and is not related to any broad economic or market factors, making it an example of unsystematic risk. The other options all relate to broader economic factors that would affect many companies and industries, and would therefore be considered systematic risk.

Which of the Following Is Most Apt to Be Unsystematic