Which One of the Following Types of Risk Cannot Be

question 30

Multiple Choice

Which one of the following types of risk cannot be effectively eliminated through portfolio diversification?

• A) labour problems.
• B) Inflation risk.
• C) Materials shortages.
• D) Product recalls.

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Definitions:

Group Conformity

The process of aligning one's attitudes, beliefs, and behaviors to those of the group due to real or imagined pressure.

Accountant

A professional who practices accounting, which involves recording, classifying, and analyzing financial transactions.

Asch Line Study

A series of experiments conducted by Solomon Asch studying if and how individuals yielded to or defied a majority group and the effect of such influences on beliefs and opinions.

Sherif Autokinetic Effect

A phenomenon in social psychology demonstrating how social influence can shape perceptions, as observed in Muzafer Sherif's studies where individuals' estimates of a moving light's distance varied according to social settings.