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.
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