Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 26, Problem 3CRCT
Summary Introduction

To discuss: The reason for not considering diversification by itself as a fair reason for merger

Introduction:

Diversification is a capital allocation process to decrease the exposure to any of the specific risks or assets. It minimizes the volatility or risks by investing in various assets.

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