Which one of the following is most apt to be a nondiversiﬁable risk?
A) A ﬁre at a petroleum reﬁnery.
B) An airline pilot's strike.
C) A sudden increase in inﬂation.
D) A shortage of peaches cane due to a hail storm.
E) A lawsuit arising from faulty refrigeration units.

Question

Quizplus · Accepted Answer

A sudden increase in inflation is a nondiversifiable risk because it affects the entire economy and cannot be mitigated through diversification.

Which One of the Following Is Most Apt to Be