Which one of the following is an example of unsystematic risk?
A) An across the board increase in income taxes
B) Adoption of a national sales tax
C) Decrease in the national level of inflation
D) An increased feeling of global prosperity
E) National decrease in consumer spending on entertainment

Question

Quizplus · Accepted Answer

The national decrease in consumer spending on entertainment is an example of unsystematic risk because it is a risk specific to the entertainment industry and not related to broader market forces such as changes in interest rates or geopolitical events.

Which One of the Following Is an Example of Unsystematic