Consider the Following Two Statements About Systematic and Unsystematic Risk

question 17

Multiple Choice

Consider the following two statements about systematic and unsystematic risk: (i) News about GNP is always related to systematic risk.
(ii) News about the CEO of a company is only unsystematic if it was not expected.

• A)(i) is correct, and (ii) is incorrect.
• B)(ii) is correct and (i) is incorrect.
• C)Both (i) and (ii) are correct.
• D)Both (i) and (ii) are incorrect.
• E)News is not related to risk.

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Definitions:

Sporadic Reliability

A term indicating an unpredictable level of reliability, where the performance or function of a system or component is irregular and not consistently dependable.

Hardwired Relay Schematic

A diagram that represents the physical wiring and logic connections of relays within a control system.

Ladder Logic

A graphical programming language used in programmable logic controllers (PLCs) that emulates electrical relay logic circuits.