Ask Question
8 January, 23:16

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

a. a well-respected chairman of the Federal Reserve Bank suddenly resigns

b. a well-respected president of a firm suddenly resigns

c. a poorly managed firm suddenly goes out of business due to lack of sales

d. a key employee suddenly resigns and accepts employment with a key competitor

e. a well-managed firm reduces its work force and automates several jobs

+5
Answers (1)
  1. 8 January, 23:39
    0
    A well-respected chairman of the Federal Reserve Bank suddenly resigns

    Explanation:

    A non-diversifiable or systematic risk, is a risk which is common to a whole market or class of investments and not just limited to just a particular company or investment.

    Non-systematic risk is a risk common to just an investment or a company.

    If the chairman of the Federal Reserve Bank suddenly resigns, it would affect a wide range of investments in the market and not just a company, which is an example of a non-diversifiable risk.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which one of the following is an example of a nondiversifiable risk? a. a well-respected chairman of the Federal Reserve Bank suddenly ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers