One example of the phenomenon known as event risk is b.a corporate takeover.
An event risk is a type of investment risk that an incident or event will be so notable that it will cause widespread effects on an industry and the economy in general.
One such event is a corporate takeover that leads to a company having stronger market power and influence.
With the world being interconnected these days thanks to globalization tendencies, a corporate takeover would also affects the economies of several nations.
This is because the branches of the companies in order nations might have to make decisions that affect the unemployment rates and productive capacity of their host nation.
For instance, if Coca-Cola and Pepsi decided to merge, this could have far reaching consequences. The risk that this would negatively affect a person's investment is event risk.
In conclusion, this is event risk.
Find out more on investment risk at https://brainly.com/question/6838192.
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