Which One of the Following Is an Example of Systematic

question 42

Multiple Choice

Which one of the following is an example of systematic risk?

• A) The Federal Reserve unexpectedly announces an increase in target interest rates.
• B) A flood washes away a firm's warehouse.
• C) A city imposes an additional one percent sales tax on all products.
• D) A toymaker has to recall its top-selling toy.
• E) Corn prices increase due to increased demand for alternative fuels.

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Definitions:

Friendship

A close and trusted relationship between two or more people, typically characterized by mutual affection and support.

Prejudged

To make a decision or form an opinion about something or someone in advance, without full examination or knowledge.

Worthy of Friendship

A philosophical concept referring to qualities that make someone a good friend.

Valid Argument

An argument wherein if the premises are true, the conclusion necessarily follows.