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1 January, 00:01

Rapid inflation, cyclical unemployment, war, hurricanes, and floods are all examples of

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  1. 1 January, 01:35
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    Rapid inflation, cyclical unemployment, war, hurricanes, and floods are all examples of non-diversifiable risk

    This is a kind of risk that affects the macro economy or large numbers of persons or groups within the economy and as a result cannot be eliminated via diversification
  2. 1 January, 02:24
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    Answer;

    -Non-diversifiable risk

    Rapid inflation, cyclical unemployment, war, hurricanes, and floods are all examples of non-diversifiable risk.

    Explanation;

    -A non-diversifiable risk is a risk that affects the entire economy or large numbers of persons or groups within the economy. It is a risk that cannot be eliminated or reduced by diversification. Examples include rapid inflation, cyclical unemployment, war, hurricanes, floods, and earthquakes because large numbers of individuals or groups are affected.

    -A diversifiable risk on the other hand is a risk that affects only individuals or small groups and not the entire economy. It is a risk that can be reduced or eliminated by diversification. For example, a diversified portfolio of stock investments is much less risky than an undiversified portfolio that is invested in a single stock.
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