Which of the following is a systematic risk?
A)the risk that oil prices rise,increasing production costs
B)the risk that the CEO is killed in a plane crash
C)the risk of a key employee being hired away by a competitor
D)the risk of a product liability lawsuit
E)the risk of an equipment failure

Question

Quizplus · Accepted Answer

Systematic risk, also known as market risk, is the risk of fluctuations in the market or economy that affect all investments. The risk of oil prices rising would fall under this category as it would affect multiple companies and industries. The other options are more specific to individual companies and would be considered unsystematic risks.

Which of the Following Is a Systematic Risk