n NISM Certifications
XV NISM Series XV
Medium

Which of the following constitutes unsystematic risk?

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Credit risk

  2. B

    Business risk

  3. C

    Liquidity risk

  4. All of the above

    Correct answer

Why this is the answer

Unsystematic risk is specific to a company or industry and can be reduced by diversification. Credit, business, and liquidity risks are examples, whereas systematic risk affects the whole market.

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