Which Is the Best Example of Idiosyncratic Risk

question 124

Multiple Choice

Which is the best example of idiosyncratic risk?

• A) a financial crisis
• B) a lawsuit because the corporation produced a faulty product
• C) a recession
• D) rising interest rates

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Definitions:

Consent

Agreement or approval given freely and deliberately by a competent individual.

Magnuson-Moss Act

A federal law enacted in 1975 to protect consumers from deceptive warranty practices, applying to warranties on consumer products.

Warranties

Legally enforceable promises or guarantees made by a seller that certain facts or conditions about a product or service are true.

FTC Rules

Regulations established by the Federal Trade Commission aimed at protecting consumers and ensuring fair competition in the marketplace.