Which one of the following is an example of unsystematic risk?
A)The inflation rate increases unexpectedly
B)The federal government lowers income taxes
C)An oil tanker runs aground and spills its cargo
D)Interest rates decline by .5 percent
E)The GDP rises by .5 percent more than anticipated

Question

Quizplus · Accepted Answer

Unsystematic risk, also known as specific risk, is the risk that is specific to a particular company or sector. An oil tanker running aground and spilling its cargo is a specific event that affects the company involved in the oil industry and is an example of unsystematic risk. The other options mentioned in the question are types of systematic risk as they affect the overall market or economy.

Which One of the Following Is an Example of Unsystematic