alleryStart learning →Which of these is given as an example of unsystematic risk?
AA general market crash
BA rise in all interest rates
CA product liability lawsuit
DA nationwide recession
Answer & Solution
Correct answer: C. A product liability lawsuit
1. Unsystematic risk is specific to one company.
2. Systematic risk affects the whole market.
3. Examples of unsystematic risk include a company facing a product liability lawsuit.
4. Inventing a new product is another example given.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 15 'Risk, Return, and Capital Market Theory'_
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