Which One of the Following Is an Example of a Nondiversifiable

Multiple Choice

Which one of the following is an example of a nondiversifiable risk?

A) A well-respected president of a firm suddenly resigns.
B) A well-respected governor of the Bank of Canada suddenly resigns.
C) A key employee of a firm suddenly resigns and accepts employment with a key competitor.
D) A well-managed firm reduces its work force and automates several jobs.
E) A poorly managed firm suddenly goes out of business due to lack of sales.