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If Company A,a Medical Research Company,makes a New Product Discovery

Question 6

Multiple Choice

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


A) no effect on Company B's, a newspaper, stock price because it is a systematic risk element.
B) no effect on Company B's, a newspaper, stock price because it is an unsystematic risk element.
C) a large effect on Company B's, a newspaper, stock price because it is a systematic risk element.
D) a large effect on Company B's, a newspaper, stock price because it is an unsystematic risk element.
E) None of these.

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