Diversification in a company requires selecting products or projects whose cash flows are not highly correlated with one another.

Name: Diversification in a company requires selecting products or projects whose cash flows are not highly correlated with one another.
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Question

Quizplus · Accepted Answer

Diversification aims to spread investment risk by choosing projects or products with cash flows that do not move in tandem, reducing the impact of any single investment's poor performance on the overall portfolio.

Diversification in a Company Requires Selecting Products or Projects Whose