12 Questions
What type of risk affects individual companies due to specific events or circumstances?
Unique risk
How can diversification help mitigate unique risk?
By spreading investments across different assets
What is the impact of high inflation on companies?
Decreased profit margins
Which factor can slow down economic growth when it rises?
Interest rates
What does interest rate risk refer to?
Changes in interest rates
What should be considered when comparing mutual funds?
The historical performance data
What type of risk affects individual companies or assets and can't be easily diversified away?
Non-systematic risk
If an automobile manufacturer's workers go on strike, what type of risk is this considered?
Non-systematic risk
Which scenario is an example of non-systematic risk?
Litigation against a specific company
What could cause the stock price of a technology company to increase according to the text?
Good advertising campaigns
Which type of risk affects the entire market or a broad segment of it according to the text?
Systematic risk
What could cause a retail company's stock price to drop based on the text?
Sales slump due to failed advertising
Test your knowledge on unique risk, also known as non-systematic risk, which affects individual companies or assets. Learn about the types of risks that cannot be diversified away easily, such as lawsuits and strikes.
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