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3. Jensen Products, Inc. is the leading manufacturer of grills, barbeques and accessories and its lead- ing grill, the Burner 3000, of which more than

3. Jensen Products, Inc. is the leading manufacturer of grills, barbeques and accessories and its lead- ing grill, the Burner 3000, of which more than 2,000,000 have been sold has been recalled by the FTC for fire danger. The recall will cost Jensen at least $400,000,000. This is an example of which type of risk?

A. Nonsystematic risk. B. Systematic risk. C. Market risk.??? D. Volatility risk.

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