Companies that pursue related diversification are more likely to improve their performance than companies that pursue unrelated diversification because they create a
A) diversification discount.
B) diversification premium.
C) conglomerate discount.
D) conglomerate premium.

Question

Quizplus · Accepted Answer

Companies that pursue related diversification are more likely to improve their performance than companies that pursue unrelated diversification because they create a diversification premium.

Companies That Pursue Related Diversification Are More Likely to Improve