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A lawsuit against one company, or an accounting scandal at one firm, is an example of:

AFirm specific risk
BInflation only risk
CMarket wide risk
DInterest rate risk
Answer & Solution
Correct answer: A. Firm specific risk
1. Only one company is affected. 2. It is also called unsystematic risk. 3. It is firm specific risk. _Source: OpenStax Principles of Finance 2e, Chapter 15, How to Think about Investing._
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