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There is a portfolio that consists of a single stock. Which of the following types of risk can be reduced as the stocks issued by
There is a portfolio that consists of a single stock. Which of the following types of "risk" can be reduced as the stocks issued by other companies are added to the portfolio?
I. Unexpected operational loss due to a massive product recall related to the passenger airbags
II.Unexpected introduced new tax code that will impose higher corporate tax rates
III. Decline in the nation's economic growth expected for the next few year
IV. Resign of the firm's CEO due to his personal scandal
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