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
C
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Suppose the following information describes the economy:GDP2,000Consumption1,500Government Spending300Net taxes400Private saving equals ________ and national saving equals ________.
A. 100; 200 B. 200; 500 C. 100; 100 D. 200; 300
Assume the players in a game have reached a Nash equilibrium. It is then reasonable to assume that each player has chosen its dominant strategy
Indicate whether the statement is true or false
Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding. Rebecca values dog sitting for the weekend at $200 . Susan is willing to dog sit for Rebecca so long as she receives at least $150 . Rebecca and Susan agree on a price of $175 . Suppose the government imposes a tax of $10 on dog sitting. The tax has made Rebecca and Susan worse off by a total of
a. $50. b. $40. c. $20. d. $10.
As the number of stocks in a portfolio rises,
a. both firm-specific risks and market risk fall. b. firm-specific risks fall; market risk does not. c. market risk falls; firm-specific risks do not. d. neither firm-specific risks nor market risk falls.