Does Diversification Always Reduce the Overall Risk

question 90

Essay

Does diversification always reduce the overall risk?

---

Definitions:

Organization Culture

The shared values, beliefs, and norms that influence the behavior and practices of individuals within an organization.

Basic Values

Fundamental beliefs or principles that guide an individual's or group's behavior and decision-making.

Chief Executive's Discretion

The extent to which a chief executive can make independent decisions without needing approval from others, often within the scope of their authority and responsibility.

Financial Reserves

involve funds or assets set aside by an organization or individual to cover future expenses, emergencies, or unforeseeable losses.