alleryStart learning →Alongside a lawsuit and a new product, which is given as an example of unsystematic risk?
AA change in the tax law
BA national election result
CA global oil price shock
DAccounting irregularities
Answer & Solution
Correct answer: D. Accounting irregularities
1. All three examples concern a single firm.
2. Examples of unsystematic risk include a product liability lawsuit.
3. A company inventing a new product is another.
4. Accounting irregularities being detected completes the list.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 15 'Risk, Return, and Capital Market Theory'_
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