Final answer:
True. Inflation, unemployment, and natural disasters such as hurricanes are examples of nondiversifiable risks.
Step-by-step explanation:
True. Inflation, unemployment, and natural disasters such as hurricanes are examples of nondiversifiable risks.
Nondiversifiable risks are events or situations that cannot be mitigated through diversification or spreading out investments. These risks affect a broad range of individuals or industries, and they are not controllable by individual actions.
For example, when a hurricane hits a region, it can cause widespread damage, impacting both households and businesses. This is a risk that individuals cannot control or diversify away from, as the entire region is affected.