The following is a MCQ. choose the number of the correct answer

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

1. no effect on Company B's stock price because it is a systematic risk element. 2. no effect on Company B's stock price because it is an unsystematic risk element. 3. a large effect on Company B's stock price because it is a systematic risk element. 4. a large effect on Company B's stock price because it is an unsystematic risk element.