Which one of the following is the best example of unsystematic risk?
A)a decrease in the value of the dollar
B)inflation exceeding market expectations
C)a warehouse fire
D)a decrease in corporate tax rates
E)an increase in consumer spending

Question

Quizplus · Accepted Answer

Unsystematic risk is also known as specific risk, which refers to the risk associated with a specific company or industry. The warehouse fire is a good example of unsystematic risk because it only affects the company or companies that own the warehouse and does not have a widespread impact on the overall market. The other choices are examples of systematic or market risk, which are risks that affect the entire market or economy.

Which One of the Following Is the Best Example of Unsystematic