Many former employees at Enron,an energy trading and supply company,had a large part of their portfolio invested in Enron stock.These employees were bearing a high degree of ________ risk.

Question

Quizplus · Accepted Answer

Unsystematic risk is specific to a single company or industry. Since the employees had a large part of their portfolio in Enron stock, they were exposed to risks specific to Enron, which is unsystematic risk.

Many Former Employees at Enron,an Energy Trading and Supply Company,had