Match each type of non-systematic risk to the scenario that best illustrates it.
- Business RiskA manufacturing firm experiences severe financial loss due to poor operational decisions and product defects.
- Credit RiskA corporate bond issuer defaults on its scheduled interest and principal obligations due to financial distress.
- Liquidity RiskAn investor faces difficulty selling an unlisted municipal bond quickly at market value without taking a steep price cut.
- Legislative RiskA sudden change in federal environmental statutes significantly increases compliance expenses for an energy company.
Cevap
Business Risk matches with operational and product failure losses; Credit Risk matches with bond debt default; Liquidity Risk matches with difficulty selling a bond quickly without price concessions; Legislative Risk matches with increased expenses due to new statutory regulations.
Each non-systematic risk is accurately paired with its company-specific driver: Business Risk with operational failure, Credit Risk with debt default, Liquidity Risk with secondary market illiquidity, and Legislative Risk with statutory law changes.
Adım Adım Çözüm
Anahtar Kavram
Classification of Unsystematic (Non-Systematic) Risks
Tahmini Süre:1m 0s