3 Answers
A common example of unsystematic risk is the stock market. There are no specific events that can cause a stock market to crash, but there are many factors that contribute to its volatility.
Examples of unsystematic risk:
- The 2008 global financial crisis was caused by unsystematic risk because it was caused by an unexpected event - the subprime mortgage crisis that had a domino effect on the global economy.
- Unpredictable changes in technology can cause unsystematic risk because it is difficult to predict when new technologies will become mainstream and how they will affect our lives.
Please login or Register to submit your answer