Which One of the Following Best Exemplifies Unsystematic Risk

question 9

Multiple Choice

Which one of the following best exemplifies unsystematic risk?

• A)Unexpected economic collapse
• B)Unexpected increase in interest rates
• C)Unexpected increase in the variable costs for a firm
• D)Sudden decrease in inflation
• E)Expected increase in tax rates

---

Definitions:

Servo Motor

A specialized motor designed to provide precise control of angular or linear position, velocity, and acceleration.

Control Valve

A valve used to regulate the flow of a fluid by varying the size of the flow passage as directed by a signal from a controller.

Derivative Action

In control systems, a component of a PID controller that predicts system behavior and acts proportionally to the rate of change of the error signal.

Error Signal

A feedback signal indicating a discrepancy between the desired and actual performance of a system.