Which One of the Following Types of Risk Cannot Be

question 29

Multiple Choice

Which one of the following types of risk cannot be effectively eliminated through portfolio diversification?

• A) inflation risk
• B) labor problems
• C) materials shortages
• D) product recalls

---

Definitions:

Vertical Differentiation

A marketing strategy where a product is designed to be of higher quality or to have more features than competing products.

Consumer Welfare

The overall satisfaction, utility, or well-being that consumers derive from consuming goods and services.

Consumer Welfare

The overall satisfaction, utility, or benefit that consumers receive from consuming goods and services.

Product Variety

The assortment of different types of goods or services that a company offers.