Which One of the Following Is the Best Example of a Diversifiable

question 60

Multiple Choice

Which one of the following is the best example of a diversifiable risk?

• A)interest rates increase
• B)energy costs increase
• C)core inflation increases
• D)a firm's sales decrease
• E)taxes decrease

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Definitions:

Interdependent

Mutually dependent; where two or more entities rely on each other.

Obedience

The act of following orders or instructions from an authority figure, or conforming to rules or laws.

Solomon Asch

A psychologist best known for his research on social conformity.

Leon Festinger

A social psychologist known for his theory of cognitive dissonance, which describes the discomfort felt by an individual when holding contradictory beliefs or values.