Diversifiable or undiversifiable risk based question


Problem: Here are three scenarios that I need to determine whether or not they represent a diversifiable or a undiversifiable risk and must explain why.

A. A large fire severely damages three major US cities.

B. A substantial unexpected rise in the price of oil.

C. The bridge on a major highway collapsed and the repairs of the bridge may take up to a year to complete.

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Finance Basics: Diversifiable or undiversifiable risk based question
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