Which One of the Following Is an Example of Systematic

question 148

Multiple Choice

Which one of the following is an example of systematic risk?

• A) The price of lumber declines sharply.
• B) Airline pilots go on strike.
• C) The Bank of Canada increases interest rates.
• D) A blizzard hits St. John's.
• E) People become diet conscious and avoid fast food restaurants.

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Definitions:

Remaining Maturity

The amount of time left until a financial instrument, such as a bond, reaches its maturity date and the principal is due to be repaid.

Coupon Rate

The annual interest rate payable on a bond's face value by its issuer, representing the yield paid to bondholders.

Par Value

A nominal value assigned to a security by the issuer, often used in the context of bonds or stock.

Yielding

The income return on an investment, such as the interest or dividends received from holding a particular security.