Which one of the following is NOT an example of systematic risk?
A)Jump in oil prices to new highs
B)Central bank decides to increase interest rates
C)Recall of a newly released product
D)New regulations on industry subsidies

Question

Quizplus · Accepted Answer

Systematic risk refers to the risk that affects the entire market or a particular sector, and cannot be diversified away. Options A, B, and D are all examples of systematic risk as they all have the potential to affect the entire market or a particular sector. Option C, however, refers to a specific event that only affects the company that produced the product, and is therefore not an example of systematic risk.

Which One of the Following Is NOT an Example of Systematic