Which is the best example of a nondiversifiable risk for Stalwart Shoes?

A) A project to open a new store in Texas
B) A project to open a new factory in Texas
C) A project to move into the sock market
D) The state of the economy in Texas
E) The state of the U.S. economy

Question

Dr. David Walker · Accepted Answer

Final Answer : E, Explanation :  The state of the U.S. economy would affect Stalwart Shoes along with the entire market as a whole, making it a nondiversifiable risk that cannot be hedged against through diversification within the company's specific industry.

Which is the best example of a nondiversifiable risk for Stalwart Shoes?

A) A project to open a new store in Texas
B) A project to open a new factory in Texas
C) A project to move into the sock market
D) The state of the economy in Texas
E) The state of the U.S. economy

Definitions

Learning Objectives

Learning Objectives

Related questions

Which is the best example of a nondiversifiable risk for Stalwart Shoes?A) A project to open a new store in TexasB) A project to open a new factory in TexasC) A project to move into the sock marketD) The state of the economy in TexasE) The state of the U.S. economy

Definitions

Learning Objectives

Learning Objectives

Related questions

Which is the best example of a nondiversifiable risk for Stalwart Shoes?

A) A project to open a new store in Texas
B) A project to open a new factory in Texas
C) A project to move into the sock market
D) The state of the economy in Texas
E) The state of the U.S. economy