Which one of the following is an example of unsystematic risk?
A)income taxes are increased across the board
B)a national sales tax is adopted
C)inflation decreases at the national level
D)an increased feeling of prosperity is felt around the globe
E)consumer spending on entertainment decreased nationally

Question

Quizplus · Accepted Answer

Unsystematic risk refers to risk that is specific to a particular company or industry, rather than affecting the overall market. Consumer spending on entertainment decreasing nationally would be an example of unsystematic risk for companies in the entertainment industry, as it would directly impact their revenue and profitability, but may not affect other industries in the same way. The other options do not refer to specific risks that would affect particular companies or industries.

Which One of the Following Is an Example of Unsystematic