Which One of These Is the Best Example of Systematic

question 52

Multiple Choice

Which one of these is the best example of systematic risk?

• A)Discovery of a major gas field
• B)Decrease in textile imports
• C)Increase in agricultural exports
• D)Decrease in gross domestic product
• E)Decrease in management bonuses for banking executives

---

Definitions:

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, taking into account various factors like interest or returns.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Coupon Rate

The annual interest rate paid by a bond, expressed as a percentage of the bond's face value.

Expected Annual Compound

A projection of the return that an investment is expected to yield on an annual basis, taking into account the effect of compounding.