Which of the Following Are Examples of Diversifiable Risk

question 7

Multiple Choice

Which of the following are examples of diversifiable risk?
I.An earthquake damages Oakland,California.
II.The federal government imposes an additional $1,000 fee on all business entities.
III.Employment taxes increase nationally.
IV.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
• F) None of the above.

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Definitions:

Electrons

Subatomic particles with a negative charge, fundamental to electricity and forming the outer structures of atoms.

Outer Rings

Components in a bearing that form the external boundary and work in conjunction with the inner rings to facilitate smooth motion of rotating parts.

Amperage

The measure of the flow of electric current in amperes.

Electrical Current

The flow of electric charge through a conductor, enabling the functioning of electrical systems and devices.