You are considering buying some stock in Continental Grain. Which of t

You are considering buying some stock in Continental Grain. Which of the following are examples
of non-diversifiable risks?

I. Risk resulting from a general decline in the stock market.
II. Risk resulting from a possible increase in income taxes.
III. Risk resulting from an explosion in a grain elevator owned by Continental.
IV. Risk resulting from a pending lawsuit against Continental.
A) II, III, and IV B) I only C) III and IV D) I and II

ANSWER

D