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You Are Considering Buying Some Stock in Continental Grain

Question 1

Multiple Choice

You are considering buying some stock in Continental Grain.Which of the following are examples of non-diversifiable risks?
I.Risk resulting from a general decline in the stock market.
II.Risk resulting from a possible increase in income taxes.
III.Risk resulting from an explosion in a grain elevator owned by Continental.
IV.Risk resulting from a pending lawsuit against Continental.


A) I and II
B) III and IV
C) I only
D) II, III, and IV

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