The research on diversification in portfolio management indicates that the best approach is probably _____.
A)related differentiation
B)related diversification
C)unrelated diversification
D)repositioning
E)divestiture

Question

Quizplus · Accepted Answer

Research suggests that related diversification, where a company expands into related markets or industries, can provide the most benefits for portfolio management. This approach allows for sharing of resources, knowledge, and capabilities across related businesses, leading to potential cost savings and synergies. Unrelated diversification or divestitures may not provide the same level of benefits and can be more difficult to manage. Repositioning may not necessarily relate to diversification in portfolio management.

The Research on Diversification in Portfolio Management Indicates That the Best