It is easier for individual investors to diversify their risk by buying shares in different firms than for the firms to combine their operations.

Name: It is easier for individual investors to diversify their risk by buying shares in different firms than for the firms to combine their operations.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Individual investors can buy shares of multiple firms to spread out their risk, but firms may face challenges in combining their operations due to differences in management, culture, and other factors.

It Is Easier for Individual Investors to Diversify Their Risk