Which of the Following Provides the Best Example of a Systematic-Risk

question 41

Multiple Choice

Which of the following provides the best example of a systematic-risk event?

• A) A strike by union workers hurts a firm's quarterly earnings.
• B) Mad Cow disease in Montana hurts local ranchers and buyers of beef.
• C) The Federal Reserve increases interest rates 50 basis points.
• D) A senior executive at a firm embezzles $10 million and escapes to South America.

---

Definitions:

Intrinsically Motivated

Being driven by internal rewards, such as personal satisfaction or the joy of doing something for its own sake.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise, rather than for the sake of the activity itself.

Competent

Having the necessary ability, knowledge, or skill to do something successfully or efficiently.

William McDougall

A psychologist known for his work on social psychology and introducing the concept of the "group mind" and the theory of instincts.