Which of the following is an example of systematic risk?
A) the death of a firm's key scientist.
B) a hail storm in Northern Alberta
C) the geopolitical uncertainty in the Middle East
D) a fire at a fish processing plant in Newfoundland

Question

Quizplus · Accepted Answer

Systematic risk, also known as market risk, refers to risks that affect the entire market, such as interest rate changes, natural disasters, and geopolitical events. The geopolitical uncertainty in the Middle East is an example of this type of risk that could impact the entire stock market. The other examples given are more specific to individual companies or industries and would fall under unsystematic risk.

Which of the Following Is an Example of Systematic Risk