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

question 40

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


Definitions:

Malathion

A chemical compound used as an insecticide, particularly effective against mosquitoes but also posing potential risks to human health and the environment.

Chlorinated Hydrocarbons

A group of chemical compounds that contain chlorine, carbon, and hydrogen, used in industrial applications but known for their environmental persistence and potential toxicity.

Aldrin

A highly toxic substance once used as an insecticide and rodenticide, now banned or restricted in many countries due to its environmental impact.

Dieldrin

A highly toxic, chlorinated, organic compound once widely used as an insecticide and pesticide before being banned due to environmental and health concerns.

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