Question

Which one of the following are examples of systematic risk? I. the exchange rate rises against...

Which one of the following are examples of systematic risk?

I. the exchange rate rises against the other major currencies

II. a national sales tax is adopted

III. an explosion occurs at a chemical plant

IV. the Federal Reserve surprisingly raises interest rates by one quarter of a percent

Answers:

a. I, II, III, and IV

b. I, III, and IV

c. I and II

d. I, II, and IV

e. II and IV

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