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1. Which one of the following is an example of a nondiversifiable risk? A poorly managed firm suddenly goes out of business due to lack

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Which one of the following is an example of a nondiversifiable risk?

A poorly managed firm suddenly goes out of business due to lack of sales

A well managed firm reduces its work force and automates several jobs

A key employee of a firm suddenly resigns and accepts employment with a key competitor

A well respected chairman of the Federal Reserve suddenly resigns

A well respected president of a firm suddenly resigns

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