Question: Previously we learned that the ultimate justification for diversifying was to build shareholder value. Select one of the three tests used to determine if a

Previously we learned that the ultimate justification for diversifying was to build shareholder value. Select one of the three tests used to determine if a diversification move will benefit shareholders and explain how that would apply to your simulation airline.

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2. Find out if there are other reference points that can be used as reasonable alternatives.

1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.