Question: Based on the following information, what is the diversifiable proportion for the stock? Standard deviation of the stock: .5 Standard deviation of the stock index:

Based on the following information, what is the diversifiable proportion for the stock? Standard deviation of the stock: .5 Standard deviation of the stock index: .1 Correlation coefficient between the stock and the stock index: .6

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2. Fear of cannibalizing current business prevents investment in new areas.

3. Most of our resources are devoted to day-to-day business so that few remain for innovative prospects.

1. Our focus on short-term results drives out ideas that take longer to mature.