Which one of the following is an example of systematic risk?
A) The price of lumber declines sharply.
B) Airline pilots go on strike.
C) The Bank of Canada increases interest rates.
D) A blizzard hits St. John's.
E) People become diet conscious and avoid fast food restaurants.

Question

Quizplus · Accepted Answer

Systematic risk refers to the risk that affects the entire market or economy, rather than a specific industry or company. The Bank of Canada increasing interest rates is an example of systematic risk because it impacts the entire economy by affecting borrowing costs, consumer spending, and investment decisions.

Which One of the Following Is an Example of Systematic