Unsystematic risk can be defined as:

Question

Quizplus · Accepted Answer

Unsystematic risk, also known as specific risk, is the risk that is specific to an individual security or company. It can include factors such as management changes, product recalls, and lawsuits that may affect only that particular company's stock price. Thus, option B – the risk of the individual security – is the correct choice. The other options – A, C, and D – are either too broad or do not accurately depict the concept of unsystematic risk.

Unsystematic Risk Can Be Defined As