Unrelated diversification makes sense only when doing soMultiple Choice

$-$ results in risk reduction by spreading a company's investments over a set of diverse industries.

$-$ delivers enhanced shareholder value if an undervalued company can be purchased at a bargain price.

$-$ stabilizes earnings, i$.$e$.,$ market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses.

$-$ meets expectations for rapid or continuous growth,

$-$ supports managerial motives including the prospects for higher compensation.