Which One of the Following Is an Example of Systematic

question 95

Multiple Choice

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

• A)investors panic causing security prices around the globe to fall precipitously
• B)a flood washes away a firm's warehouse
• C)a city imposes an additional one percent sales tax on all products
• D)a toymaker has to recall its top-selling toy
• E)corn prices increase due to increased demand for alternative fuels

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Definitions:

Safety Stock

Additional inventory kept to reduce the risk of stockouts.

Service Level

A measurement of the quality and efficiency of a service, often evaluated based on factors such as speed, reliability, and customer satisfaction.

Safety Stock

Extra inventory kept on hand to protect against stockouts caused by variations in supply and demand.

Service Level

A measure of the quality of service provided to customers, often quantified as the percentage of customer demands met on time.