If Company a Makes a New Product Discovery and Their

Multiple Choice

If company A makes a new product discovery and their stock rises 5% this will have:

A) no effect on Company B's stock price because it is a systematic risk element.
B) no effect on Company B's stock price because it is an unsystematic risk element.
C) a large effect on Company B's stock price because it is a systematic risk element.
D) a large effect on Company B's stock price because it is an unsystematic risk element.