At a lovely Sunday picnic you impress your partner by discussing the core concept of risk versus return. You explain that when investments are diversified across different asset classes the overall risk profile of the portfolio is improved.You continue by explaining that there are numerous types of risk. Which of the following are examples of unsystematic risk?

(1)Financial risk (due to the company's excess leverage)

(2) Loss of market share

(3) Interest rate risk

(4) Business-cycle risk

a.2 and 3

b.1 and 2

c.2 and 4

d.1 and 4