of the options listed below, which is the best example of a diversifiable risk? question 2 options: core inflation increases energy costs increase federal income taxes increase a firm's sales decrease interest rates increase

Respuesta :

"A firm's sales decrease" is the best example of diversifiable risk.

What is a diversifiable risk?

The probability that a security's price would vary as a result of its unique qualities is known as diversifiable risk. An investor's portfolio can be diversified to reduce and ultimately get rid of this kind of risk. The risk that can be diversified is distinct from the risk that is present across the board in the market.

For instance, a product recall may cause the issuer of a security to lose sales, which will lower the value of its shares. Just the price of that company's security will decrease; not the market as a whole.

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