Which of the Following Activities Does NOT Diversify Risk

question 119

Multiple Choice

Which of the following activities does NOT diversify risk?

• A) writing earthquake insurance policies for the entire Western United States
• B) writing hurricane insurance policies only in Florida
• C) investing in real estate in various states across the United States.
• D) purchasing the stock of a variety of different companies

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Definitions:

Electrons

Negatively charged subatomic particles that orbit the nucleus of an atom, involved in electrical conduction and chemical bonding.

Buffer

A solution or compound that stabilizes the pH of a solution by adding or removing hydrogen ions.

Acidic

Characterized by a low pH, indicating a higher concentration of hydrogen ions, often associated with substances like lemon juice or vinegar.

Basic

Characteristic of substances with a pH greater than 7, often capable of neutralizing acids to form water and salts.