Which one of the following is most apt to be a nondiversifiable risk?

A) A fire at a petroleum refinery.
B) An airline pilot's strike.
C) A sudden increase in inflation.
D) A shortage of peaches cane due to a hail storm.
E) A lawsuit arising from faulty refrigeration units.

Nondiversifiable Risk

The portion of investment risk that cannot be eliminated through diversification, attributed to market factors affecting all investments.

Inflation

The upward movement in the general price index of goods and services, which diminishes the purchasing ability.