Question
Asked Mar 26, 2020
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Which one of the following best describes systematic risk in owning the common stock of the Ford Motor Automobile company?

a) Lower car sales announced by the auto sector in general
b) An increase in the price of steel used in automobiles
c) Lower interest rates leading to an increase in the stock market in general
d) The Ford Motor Company announcing a large new sales order.
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Expert Answer

Step 1

Systematic risk:

Risk which cannot be diversifiable. Systematic risk will affect entire market equally. Exampl...

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