A firm in Moose Jaw announces a revolutionary way to make auto airbags in a way that decreases their risk to automobile occupants. This is a type of surprise that would be characterized as unsystematic risk.

Question

Quizplus · Accepted Answer

Unsystematic risk refers to the risk that is inherent to a specific company or industry. In this case, the announcement by a firm in Moose Jaw about a revolutionary way to make auto airbags safer is specific to that company, thus representing unsystematic risk, as it does not affect the entire market or economy but rather the specific company or potentially the auto industry.

A Firm in Moose Jaw Announces a Revolutionary Way to Make