All of the Following Are Ways to Reduce an Organization's

question 15

Multiple Choice

All of the following are ways to reduce an organization's health insurance costs EXCEPT

• A) programs to give employees financial incentives to lose weight and quit smoking.
• B) providing gym memberships to employees or exercise equipment at the workplace.
• C) employing utilization review of healthcare provider services and charges.
• D) eliminating coverage for psychiatric illnesses and treatment for addiction.

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Definitions:

Nondiversifiable Risk

The portion of an investment's risk that cannot be eliminated through diversification, often associated with market-wide risks.

Systematic Risk

The danger that affects the whole market or a part of the market, which cannot be reduced by diversifying investments.

Unique Risk

A risk that affects a very small number of assets, also known as unsystematic risk, specific risk, or idiosyncratic risk, and can be largely eliminated by diversification.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets, including economic, political, and geopolitical events.