Which one of the following is an example of systematic risk? The Federal Reserve
ID: 2726218 • Letter: W
Question
Which one of the following is an example of systematic risk?
The Federal Reserve unexpectedly announces an increase in target interest rates.
A flood washes away a firm's warehouse.
A city imposes an additional one percent sales tax on all products.
A toymaker has to recall its top-selling toy.
A.The Federal Reserve unexpectedly announces an increase in target interest rates.
B.A flood washes away a firm's warehouse.
C.A city imposes an additional one percent sales tax on all products.
D.A toymaker has to recall its top-selling toy.
Explanation / Answer
A. The Federal Reserve unexpectedly announces an increase in target interest rates.
Systematic risk is market risk and non diversifiable risk .Other options does not fall in systematic risk
A. The Federal Reserve unexpectedly announces an increase in target interest rates.
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