Why Are Some Risks Diversifiable and Some Nondiversifiable? Give an Example

question 40

Essay

Why are some risks diversifiable and some nondiversifiable? Give an example of each.

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Definitions:

Just Cause

A legal standard that must be met to justify certain actions, such as the termination of employment, indicating a valid and lawful reason.

Reasonable Notice

Notification given within a sufficient time frame, allowing individuals or parties to prepare or respond appropriately to an action or decision.

Vicariously Liable

The responsibility of one party for the actions of another, typically an employer being held responsible for the actions of their employees.

Independent Contractors

Individuals or entities that perform work or services for another entity as non-employees, under terms specified in a contract.