33.13
13. Explain what the difference is between systematic and unsystematic risk and give me one example of each. (4)
Systematic risk is risk related to economy / market-wide events like interest rates, recessions and wars. These types of events affect all stocks and cannot be diversified away.
Unsystematic risk is related to events that don't affect all companies. Examples include your plant burns down, your product flops, or your product is a huge hit.