Which one of the following is NOT an example of systematic risk?
A) Mercedes-Benz recalls its B-series line of automobiles due to rollover safety concerns.
B) Central bank decides to increase interest rates.
C) Rising oil prices impact a number of industries including the airline industry.
D) A newly elected government passes a new law restricting industry subsidies.

Question

Quizplus · Accepted Answer

Systematic risk affects the entire market or economy, such as changes in interest rates or oil prices. The recall of a specific car model is an unsystematic risk, affecting only that company.

Which One of the Following Is NOT an Example of Systematic