The Shares of Firms with Diversified Operations Are________

question 73

Multiple Choice

The shares of firms with diversified operations are________.

• A)generally positively affected by diversification,because of the reduction in risk
• B)generally negatively affected by diversification,because of the increase in risk
• C)generally not affected by diversification,because investors can easily diversify their own portfolios
• D)generally negatively affected by diversification,because of the increase in the required rate of return

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Definitions:

Hemopoietic Tissue

Blood-forming tissue.

Red Bone Marrow

A tissue found in the interior of bones, rich in blood vessels and stem cells, responsible for the production of blood cells.

Elastic Cartilage

A type of flexible cartilage found in areas like the ears and epiglottis, providing strength and elasticity.

External Ears

The outer parts of the ear, including the pinna and the ear canal, which collect sound waves and direct them inward.