Question: How can diversification create benefits for the acquiring firm?Multiple choice question.Diversification reduces risk and thereby increases debt capacity.Diversification is always a benefit to a merged

How can diversification create benefits for the acquiring firm?Multiple choice question.Diversification reduces risk and thereby increases debt capacity.Diversification is always a benefit to a merged firm.Diversification decreases the systematic risk of the combined firm at lower costs than by investors adjusting their personal portfolios.Internal labor is not allocated better in the combined firm.

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