Question: Why is corporate diversification an ineffective way to pool risks? Managers divest poor performers too rapidly. The environment changes too rapidly. Pooling increases bureaucratic costs.

Why is corporate diversification an ineffective way to pool risks?
Managers divest poor performers too rapidly.
The environment changes too rapidly.
Pooling increases bureaucratic costs.
Business cycles between industries are difficult to predict.
Why is corporate diversification an ineffective way to pool risks? Managers

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