Based upon the research evidence,related diversification appears to be a better strategy for portfolio management than unrelated diversification.

Question

Quizplus · Accepted Answer

Research has shown that related diversification can lead to better economies of scope, synergies, and knowledge sharing between businesses, whereas unrelated diversification may lead to inefficient allocation of resources and lack of synergies. Therefore, related diversification is considered a better strategy for portfolio management.

Based Upon the Research Evidence,related Diversification Appears to Be a Better