Which one of the following is the best example of systematic risk?
A)Discovery of a major gas field
B)Decrease in textile imports
C)Increase in agricultural exports
D)Decrease in gross domestic product
E)Decrease in management bonuses for banking executives

Question

Quizplus · Accepted Answer

Decrease in gross domestic product (GDP) is an example of systematic risk as it affects the entire market and cannot be diversified away by investing in a single company or industry. It is a macroeconomic factor that impacts all companies and industries in the economy.

Which One of the Following Is the Best Example of Systematic