Explain why a firm whose stock is actively traded in the securities markets need not concern itself

Question:

Explain why a firm whose stock is actively traded in the securities markets need not concern itself with diversification. In spite of this, how is the risk of projects frequently measured? Why?

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...