Question: 10. Shareholders place less value on firm diversification than managers do, because: A) Horizontal merger is more popular. B) Risk can be diversified by shareholders

10. Shareholders place less value on firm diversification than managers do, because: A) Horizontal merger is more popular. B) Risk can be diversified by shareholders more cheaply through a portfolio of investments. C) Diversification costs money. D) Firms can enter new markets by vertically integrating, which is cheaper

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