13 Select the Unsystematic risk from the following a. The government increases custom duty at the material used by the company b. The government resorts to massive deficit financing c. The RBI promulgates a restrictive credit policy d. The inflation rate increases 17 Which is true about market segmentation theory of the term structure of interest rates a. The yield curve reflects the market's anticipation of future interest rates. b. Investors and many bond issuers have preferences for different maturity bonds. c. The yield curve reflects a preference by lenders for shorter maturities because of interest rate risk associated with the long-term bonds. d. The yield curve reflects the market's expectation about a bond's default risk. 20 The sum of probabilities of the occurrence of outcomes is equal to a. 3 b. 2 c. 1 d. Less than 1