If Company A, a Medical Research Company, Makes a New

question 30

Multiple Choice

If company A, a medical research company, makes a new product discovery and their stock rises 5%, this will have:

• A)no effect on Company B's, a newspaper, stock price because it is a systematic risk element.
• B)no effect on Company B's, a newspaper, stock price because it is an unsystematic risk element.
• C)a large effect on Company B's, a newspaper, stock price because it is a systematic risk element.
• D)a large effect on Company B's, a newspaper, stock price because it is an unsystematic risk element.
• E)None of the above.

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