Which of the Following Are Examples of Diversifiable Risk

question 23

Multiple Choice

Which of the following are examples of diversifiable risk?
i.An earthquake damages Oakland,California.II.The federal government imposes an additional $1,000 fee on all business entities.III.Employment taxes increase nationally.IV.Toymakers are required to improve their safety standards.

• A) I and III only
• B) II and IV only
• C) II and III only
• D) I and IV only
• E) I,III,and IV only

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Definitions:

Research Methods

Systematic approaches, techniques, and procedures used by scientists to conduct research, gather data, and analyze results in order to draw valid conclusions.

Dual-Process Theories

Psychological models that propose two distinct systems for processing information: one that is fast, automatic, and unconscious, and another that is slower, deliberate, and conscious.

Important Decisions

Choices or judgments that have significant effects on an individual's life or situation.

Rule-Governed Strategies

Approaches based on systematic and logical procedures, such as algorithms or heuristics, for problem-solving or decision-making.