Which one of the following is the best example of systematic risk?
A)The price of lumber declines sharply
B)Inflation rises unexpectedly
C)Airline pilots go on strike
D)A hurricane hits a tourist destination
E)People become diet conscious and avoid fast food restaurants

Question

Quizplus · Accepted Answer

Systematic risk refers to the risk that affects the entire market or a particular segment of the market, regardless of the individual company or asset. Inflation is a macroeconomic factor that affects the entire market, making it the best example of systematic risk among the given choices. The other options are more specific to individual companies or industries and may be considered examples of unsystematic or idiosyncratic risk.

Which One of the Following Is the Best Example of Systematic