Which of the following are the examples of systematical risk. 1. Elimination of Government Subsidy 2. Increase in bank rate 3. Labour problem 4. High levered fund Select the correct answer:

1, 2 and 3
1, 2 and 4
Both 1 and 2
Both 1 and 4

The correct answer is: C. Both 1 and 2

Systematic risk is the risk that affects the entire market, such as changes in interest rates, inflation, and economic growth. It is also known as market risk or non-diversifiable risk.

Elimination of Government Subsidy and Increase in bank rate are examples of systematic risk because they can affect the entire market. For example, if the government eliminates subsidies for a particular industry, the companies in that industry may suffer, which could lead to a decline in the stock prices of those companies. Similarly, if the central bank increases interest rates, it can make it more expensive for businesses to borrow money, which could lead to a decline in economic activity and corporate profits.

Labour problem and High levered fund are not examples of systematic risk because they are specific to individual companies or industries. For example, a labour problem at a particular company may cause its stock price to decline, but it is unlikely to have a significant impact on the stock market as a whole. Similarly, a high-leveraged fund is a fund that borrows money to invest, which increases its risk. However, this risk is specific to the fund and does not affect the market as a whole.

In conclusion, the correct answer is: C. Both 1 and 2