One common argument against diversification strategies is

Question

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This option explains that shareholders can achieve risk-reduction more efficiently by investing in other industries themselves, which implies that diversification may not be necessary, and thus, not a good strategy. The other options (A and B) do not support a strong argument against diversification strategies. Option A only mentions a lack of understanding, which does not necessarily imply that diversification is a poor strategy. Option B presents a sweeping generalization without any supporting evidence.

One Common Argument Against Diversification Strategies Is