A Sound Justification for Unrelated Diversification Is That

A sound justification for unrelated diversification is that

A) doing so can result in risk reduction by spreading a company's investments over a set of diverse industries
B) doing so can meet expectations for rapid or continuous growth
C) doing so can stabilize earnings, i.e., market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses
D) doing so can support managerial motives including the prospects for higher compensation
E) doing so can deliver enhanced shareholder value if an undervalued company can be purchased at a bargain price