Which of the following represent systematic risks? I. the president of a company suddenly resigns II. the economy goes into a recessionary period III. a company's product is recalled for defects IV. the Federal Reserve unexpectedly changes interest rates

The correct option: II. the economy goes into a recessionary period represents the systematic risk.

Explanation:

Systematic risk is a risk that affects the entire economic resource and market. This risk occurs due to control of specific company or individual. The expected returns of the company will be affected due to systematic risk. Systematic risk cannot be predicted and cannot be avoided.

Recession period is period of decline in economy and drop in the share market. Recession period causes increase in unemployment. Economy of the country will be affected during recession time.

decentralization can the employees to get more involved in the business decision making