_____ is not a source of systematic risk.
a) Interest rates.
b) Business cycle
c) Inflation rate
d) Personnel changes
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Answer:
Personnel changes is not a source systematic risk.
Explanation:
Systematic risk in business is that kind of risk which affects the entire market including stocks or shares. It is also known as market risk or volatility. Reasons for such market risk are as follows:
- Change in interest rates,
- Business cycle,
- Inflation rate,
- Natural disasters like earthquake, flood, famine etc,
- Weather events,
- War and so on.
Thus it is safe to conclude that in no way personnel changes can be a source of systematic risk.
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