Which of the Following Is an Example of an Unsystematic

question 37

Multiple Choice

Which of the following is an example of an unsystematic risk exposure for a company?

• A) A change in interest rates
• B) A change in foreign exchange rates
• C) Political instability in a country
• D) Change in future performance forecast for a company

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Definitions:

Outstanding Principal

The portion of a loan amount that has not yet been repaid to the lender.

Principal Repayment

The process of paying back the original amount of money borrowed, excluding interest, in a loan or bond.

Fixed-Rate Mortgage

A mortgage loan that has a fixed interest rate for the entire term of the loan, protecting borrowers from rising interest rates.

Principal Payments

Payments made on a loan that reduce the remaining balance of the principal amount borrowed.