Which of the following represent systematic risks?
I. the president of a company suddenly resigns
II. the economy goes into a recessionary period
III. a company's product is recalled for defects
IV. the Federal Reserve unexpectedly changes interest rates
A) I, II and IV only
B) II and IV only
C) I and III only
D) I, II and III only

Question

Quizplus · Accepted Answer

Systematic risks are those that affect the entire market or economy, not just a specific company or industry. II (the economy going into a recession) and IV (the Federal Reserve changing interest rates unexpectedly) are examples of events that would impact the broader market or economy, making them systematic risks.

Which of the Following Represent Systematic Risks