All of the following factors have their primary impact on unsystematic risk EXCEPT ____.
A) availability of raw materials
B) effects of foreign competition
C) changes in inflation
D) strikes

Question

Quizplus · Accepted Answer

Changes in inflation directly impact the entire market and are therefore a systematic risk, rather than a risk that is specific to a particular company or industry (i.e. unsystematic risk). The other factors listed (availability of raw materials, effects of foreign competition, and strikes) are examples of unsystematic risk as they primarily affect individual companies or industries.

All of the Following Factors Have Their Primary Impact on Unsystematic