Apple's share price jumped when it announced that its revenue had increased because of the successful launch of iPad and the increased sales of Macbook laptops. This is an example of
A)unsystematic risk.
B)systematic risk.
C)market risk.
D)both A and C

Question

Quizplus · Accepted Answer

The announcement of the successful launch of a new product (iPad) and increased sales of an existing product (Macbook) suggests company-specific or unsystematic risk. This news specifically affects Apple's financial performance and is not a result of larger macroeconomic factors affecting the entire market or industry, which would be systematic risk. Market risk (C) would refer to risk inherent in the market as a whole affecting all companies and industries, not just Apple. Therefore, the correct answer is A.

Apple's Share Price Jumped When It Announced That Its Revenue