Which of the following is NOT a type of unsystematic risk?

Unsystematic risk refers to the unique risks that can affect an individual company or industry, as opposed to systematic risk, which impacts the entire market or economy.

Market risk is the risk of losses in financial markets due to factors that affect the overall performance of the market, such as economic changes, interest rate fluctuations, and geopolitical events. Since market risk affects all investments across the board, it is considered a type of systematic risk, not unsystematic risk.

On the other hand, political risk relates to changes in government policy or instability in a country, which can negatively affect specific investments or sectors. Similarly, business risk involves challenges that a particular company might face, such as operational issues or competitive pressures. Credit risk refers to the likelihood that a borrower will default on their obligations, impacting specific financial instruments or companies. Each of these risks is specific to a company or sector, thereby categorizing them as unsystematic risks. This distinction underscores why market risk stands apart from the other options, confirming it as the correct answer to identify the type of risk that is not unsystematic.