Question

Company A is a medical research company that develops and tests new drugs. Company B is in the news industry and publishes multiple newspapers. If Company A discovers a new product and its stock rises in value by 5 percent as a result, this will most likely have ___ effect on Company B's stock price because the discovery would be classified as _______ risk.

Answer 1

no; an unsystematic

Step-by-step explanation:

Company A is in medical research industry while company B is in media(news) industry. These are two different industries ;meaning, a change in one will have no correlation to the other. Increase in the new product discoveries by company A would have no effect on company B's stock price. This is because the discovery would be considered a unsystematic risk to company B; basically, industry specific risk