Which of the Following Is Not an Example of Unsystematic

question 30

Multiple Choice

Which of the following is not an example of unsystematic risk?

• A)Changes in the level of interest rates.
• B)The chief executive officer resigns.
• C)A legal suit against a company for environmental pollution.
• D)The development of a new product line.

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Definitions:

Available-for-Sale Securities

Financial assets that are not classified as held-to-maturity or trading securities, and can be sold in the short-term.

Market Adjustment

Market adjustment is the process of modifying the value of an asset or inventory to reflect its current market value rather than its book value, often due to changes in demand, supply, or economic conditions.

Journal Entry

A record in accounting that shows the economic effects of transactions on the accounts of a business.

Held-to-Maturity Debt Securities

Investments in debt securities that a company has the positive intent and ability to hold until maturity.