Recently an Oil Rig in the Gulf of Texas Blew

question 299

Multiple Choice

Recently an oil rig in the Gulf of Texas blew up causing the value of your stock in the company who owns the oil rig to fall.What type of risk does this represent?

• A)Diversifiable risk
• B)Systematic risk
• C)Political and regulatory risk
• D)Both B and C

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Definitions:

Linehaul Highway Tractors

Large trucks designed for long-distance hauling of goods typically over highways, part of the freight and logistics sector.

Torsional Vibrations

Oscillations of an object in a rotational manner around its axis due to alternating torque or twisting forces.

U-joint Working Angles

The operational angles at which universal joints efficiently transfer rotational power between shafts.

Full Rotation

The movement of an object in a circular path, completing 360 degrees around an axis.