You Are Considering Buying Some Stock in Continental Grain

question 1

Multiple Choice

You are considering buying some stock in Continental Grain.Which of the following are examples of non-diversifiable risks?
I.Risk resulting from a general decline in the stock market.
II.Risk resulting from a possible increase in income taxes.
III.Risk resulting from an explosion in a grain elevator owned by Continental.
IV.Risk resulting from a pending lawsuit against Continental.

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

---

Definitions:

Alertness

The state of being watchful and prompt to meet danger or emergency, or to discover and avoid errors.

Neurochemical Properties

Characteristics and behaviors of the chemicals in the nervous system that influence brain function and behavior.

Nicotine

A potent chemical found in tobacco plants that acts as a stimulant and is highly addictive, commonly consumed through smoking cigarettes.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, which can cause intense high and is highly addictive.