Which of the following is NOT a systematic risk?
A)The risk that the Reserve Bank raises interest rates
B)The risk that the economy slows, reducing demand for your firm's products
C)The risk that your new product will not receive regulatory approval
D)The risk that oil prices rise, increasing production costs

Question

Quizplus · Accepted Answer

Regulatory approval for a specific product is not a systematic risk. Systematic risks are those that affect the overall market or economy, such as interest rate changes and changes in consumer demand. The risk of not receiving regulatory approval is specific to the firm or product and is therefore an unsystematic or company-specific risk.

Which of the Following Is NOT a Systematic Risk