A substantial body of evidence indicates that increasing a firm's degree of diversification can improve substantially financial returns to shareholders.

Question

Quizplus · Accepted Answer

While diversification can potentially reduce risk, there is no guarantee it will always improve financial returns to shareholders. In some cases, excessive diversification can lead to a dilution of focus and inefficiencies, potentially harming shareholder value.

A Substantial Body of Evidence Indicates That Increasing a Firm's