Multiple Choice
One example of a nondiversifiable risk is the sudden:
A) resignation of a well-respected president of a firm.
B) passing of a well-respected Federal Reserve Bank chairman.
C) resignation of a key employee of a major manufacturer.
D) replacement of a firm's workforce with robots.
E) closing of a business due to a lack of sales.
Correct Answer:

Verified
Correct Answer:
Verified
Q96: Unsystematic risk:<br>A)can be effectively eliminated through portfolio
Q97: The systematic risk of the market is
Q98: Assume you are looking at an opportunity
Q99: The probability the economy will boom is
Q100: The beta of a security is calculated
Q102: A portfolio is comprised of 100 shares
Q103: The market has an expected rate of
Q104: The rate of return on the common
Q105: The combination of the efficient set of
Q106: If the covariance of Stock A with