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 refers to the risk that is inherent in a specific company or industry. By having a large part of their portfolio invested in Enron stock, these employees were exposed to the risks specific to Enron's performance and the energy industry, rather than risks affecting the entire market.

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