Which of these is a solid justification for pursuing an unrelated diversification strategy? Multiple choice question. The consolidated profit of unrelated businesses is more stable than profits of firms with related businesses. Risk is reduced by spreading investments over a set of diverse industries. Higher levels of managerial compensation associated with a greater degree of diversification tend to increase shareholder value. Management personnel have a high ability to spot low-priced, underperforming companies that could become profitable with some basic guidance