Which one of these represents systematic risk?
A)Major layoff by a regional manufacturer of power boats
B)Increase in consumption created by a reduction in personal tax rates
C)Surprise firing of a firm's chief financial officer
D)Closure of a major retail chain of stores
E)Product recall by one manufacturer

Question

Quizplus · Accepted Answer

Systematic risk affects the entire market or economy, such as changes in tax rates, which can influence overall consumption and economic activity.

Which One of These Represents Systematic Risk