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mihalych1998 [28]
3 years ago
9

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

Business
1 answer:
AlekseyPX3 years ago
8 0

Answer:

B. a well respected chairman of the Federal Reserve suddenly resigns

Explanation:

A non diversificable risk is a risk that cannot be eliminated by diversifying a portfolio. It is dependent on the market conditions. E.g. recession, war.

A diversificable risk is a risk that can be eliminated by diversifying a portfolio. Examples include: a key employee suddenly resigns and accepts employment with a key competitor, a well managed firm reduces its work force and automates several jobs.

I hope my answer helps you.

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Follows are the instructions to this question:

Explanation:

Given:

Configuration of machine = \$16,000 \ \ \ \ 40  \ \ \ \ 25 \ \ \ \ 15

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c. News has no effect on stock prices.

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Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

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