5. Sammy buys stock in a suntan-lotion maker and also stock in an umbrella maker. One stock...

Question:


5. Sammy buys stock in a suntan-lotion maker and also stock in an umbrella maker. One stock does well when the weather is good; the other does well when the weather is bad. Sammy’s portfolio indicates that “weather risk” is a _______ risk.

LO17.6

a. Diversifiable.

b. Nondiversifiable.

c. Automatic.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 9781259915673

21st Edition

Authors: Campbell McConnell, Stanley Brue , Sean Flynn

Question Posted: