Risk can be characterized as diversifiable or nondiversifiable, depending on whether it is possible to eliminate...
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Risk can be characterized as diversifiable or nondiversifiable, depending on whether it is possible to eliminate the risk by holding a sufficiently diversified portfolio. Insurable risk is diversifiable. Why, then, don't real estate investors simply eliminate such risks by diversifying rather than paying an insurance company to handle the risk? Risk can be characterized as diversifiable or nondiversifiable, depending on whether it is possible to eliminate the risk by holding a sufficiently diversified portfolio. Insurable risk is diversifiable. Why, then, don't real estate investors simply eliminate such risks by diversifying rather than paying an insurance company to handle the risk?
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Real estate investors cannot simply eliminate insurable risk ... View the full answer
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ISBN: 978-0133023893
7th edition
Authors: William Stallings, Tom Case
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