From an efficient risk-bearing standpoint it makes sense for investors to hold diversified claims in all firms.

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From an efficient risk-bearing standpoint it makes sense for investors to hold diversified claims in all firms. Yet we observe partnerships and closely held corporations, which have concentrated ownership positions. Explain why.

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Managerial Economics and Organizational Architecture

ISBN: 978-0073375823

5th edition

Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr

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Question Posted: Apr 30, 2018 07:57 AM

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From an efficient risk-bearing standpoint it makes sense for investors to hold diversified claims in all firms.

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There are costs as well as benefits to having diffuse ownership ...View the full answer

Managerial Economics and Organizational Architecture

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