Which one of the following is an example of unsystematic risk? the inflation rat
ID: 2730441 • Letter: W
Question
Which one of the following is an example of unsystematic risk?
the inflation rate increases unexpectedly
the federal government lowers income taxes
an oil tanker runs aground and spills its cargo
interest rates decline by one-half of one percent
the GDP rises by 2% more than anticipated
the inflation rate increases unexpectedly
the federal government lowers income taxes
an oil tanker runs aground and spills its cargo
interest rates decline by one-half of one percent
the GDP rises by 2% more than anticipated
Explanation / Answer
Answer: c. an oil tanker runs aground and spills its cargo .
All other options are systematic risk. Because systematic risk affects entire market.
Where as option c is unique to a firm, which can be mitigate.
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