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

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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.

a. diversifiable

b. nondiversifiable

c. automatic

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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