Asked by
Jordan McVey
on Oct 25, 2024
Verified
Of the following endeavors of Happy Home Insurance Company of California, which involves the most nondiversifiable risk?
A) Fire insurance
B) Home burglary insurance
C) Earthquake insurance
D) Personal accident insurance
E) Home office insurance
Nondiversifiable Risk
A type of risk that affects all investments across the market and cannot be eliminated through diversification.
- Become familiar with the concepts of diversifiable and nondiversifiable risk.
- Assess the inherent risks that cannot be diversified across different situations and projects.
Verified Answer
JM
Learning Objectives
- Become familiar with the concepts of diversifiable and nondiversifiable risk.
- Assess the inherent risks that cannot be diversified across different situations and projects.