One Example of a Nondiversifiable Risk Is the Sudden

question 101

Multiple Choice

One example of a nondiversifiable risk is the sudden:

• A)resignation of a well-respected president of a firm.
• B)passing of a well-respected Federal Reserve Bank chairman.
• C)resignation of a key employee of a major manufacturer.
• D)replacement of a firm's workforce with robots.
• E)closing of a business due to a lack of sales.

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Definitions:

Schachter-Singer Theory

A theory of emotion that states emotions are derived from physiological arousal and the labeling of that arousal based on cognitive processing of the environment.

Two-factor Theory

A concept in psychology that suggests job satisfaction and dissatisfaction are influenced by separate and distinct factors, with hygiene factors affecting dissatisfaction and motivators affecting satisfaction.

Cognitive Label

The process of identifying and defining one's emotional state based on cognitive assessment of the situation.

Sympathetic Division

A part of the autonomic nervous system responsible for the body's 'fight or flight' response to stress.