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 refers to the risk inherent to the entire market or market segment, influenced by factors like economic, political, or global events, not specific to a single industry or company. The example given is more indicative of unsystematic risk, which affects a specific industry or company.

An Example of Systematic Risk Would Be If the Stock