Explain Whether Or Not It Represents A Diversifiable Or An Undiversifiable Risk

Explain whether or not it represents a diversifiable or an undiversifiable risk. Please consider the issues from the viewpoint of investors. a. There’s a substantial unexpected increase in inflation.b. There’s a major recession in the U.S. c. A major lawsuit is filed against one large publicly traded corporation.

Diversifiable risk is when the risk is unique to a particular investor, not spread across to impactgenerally, thus it can be easily avoided. Whereas an undiversifiable risk is when it impacts to…