Which of the following is NOT a systematic risk?
A)The risk that oil prices rise,increasing production costs
B)The risk that the Federal Reserve raises interest rates
C)The risk that the economy slows,reducing demand for your firm's products
D)The risk that your new product will not receive regulatory approval

Question

Quizplus · Accepted Answer

The risk that your new product will not receive regulatory approval is a firm-specific risk, or unsystematic risk, as it is specific to your firm and not related to broader market or economic factors. A systematic risk, on the other hand, is a risk that affects the entire market or economy and cannot be diversified away. Options A, B, and C are all examples of systematic risks as they are related to broader market or economic factors.

Which of the Following Is NOT a Systematic Risk