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 chairman of the Federal Reserve suddenly resigns
C) a key employee 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