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    Question

    Which of the following would be classified as an

    unsystematic risk?​
    A GDP slowdown Correct Answer Incorrect Answer
    B Recession in global markets Correct Answer Incorrect Answer
    C CEO fraud in a specific company Correct Answer Incorrect Answer
    D Sudden inflation hike Correct Answer Incorrect Answer
    E War in oil-producing countries Correct Answer Incorrect Answer

    Solution

    CEO fraud is a premier example of unsystematic risk (also known as specific or idiosyncratic risk), as it represents a threat that impacts a particular company, rather than the entire market or economy. 

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