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notka56 [123]
3 years ago
5

Rapid inflation, cyclical unemployment, war, hurricanes, and floods are all examples of

History
2 answers:
harkovskaia [24]3 years ago
7 0

Rapid inflation, cyclical unemployment, war, hurricanes, and floods are all examples of non-diversifiable risk

This is a kind of risk that affects the macro economy or large numbers of persons or groups within the economy and as a result cannot be eliminated via diversification  


denis-greek [22]3 years ago
4 0

Answer;

-Non-diversifiable risk

Rapid inflation, cyclical unemployment, war, hurricanes, and floods are all examples of non-diversifiable risk.

Explanation;

-A non-diversifiable risk is a risk that affects the entire economy or large numbers of persons or groups within the economy. It is a risk that cannot be eliminated or reduced by diversification. Examples include rapid inflation, cyclical unemployment, war, hurricanes, floods, and earthquakes because large numbers of individuals or groups are affected.

-A diversifiable risk on the other hand is a risk that affects only individuals or small groups and not the entire economy. It is a risk that can be reduced or eliminated by diversification. For example, a diversified portfolio of stock investments is much less risky than an undiversified portfolio that is invested in a single stock.

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Despite the vote passing, some members of the Congress did not like the idea of independence and worked to maintain good relations with King George III but by then the king had declared that the colonies were in a state of rebellion.

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