Which of the Following Are Examples of Diversifiable Risk

question 40

Multiple Choice

Which of the following are examples of diversifiable risk?
I.  An earthquake damages an entire town
II. The federal government imposes a $100 fee on all business entities
III. Employment taxes increase nationally
IV. All toymakers are required to improve their safety standards

• A) I and III only
• B) II and IV only
• C) II and III only
• D) I and IV only
• E) I, III, and IV only

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Definitions:

Delivered Power

The amount of electrical power supplied to a load or system by its source.

Cycle

In an alternating current (AC) circuit, one complete waveform, including a positive and a negative swing, usually measured in hertz (Hz).

Delta Connected

A method of circuit connection in electrical engineering where three components form a closed loop resembling the Greek letter Delta (Δ).

Phase Voltage

The voltage measured across a single component in a multi-phase system.