Question
Acme Explosives Company, a publicly-traded concern, specializes in products designed to hunt road runners. CEO Wylie Coyote wants to diversify into the fast food business,
Acme Explosives Company, a publicly-traded concern, specializes in products designed to hunt road runners. CEO Wylie Coyote wants to diversify into the fast food business, which is negatively correlated with the market for road runner hides. If he were to invest in a new corporate fast food division as a risk reduction diversification strategy, the primary beneficiary of the diversification would be Group of answer choices
Wylie and his management team.
Acme stockholders
Road runners
Portfolios holding Acme stock
None of the above -- There would be no diversification benefit.
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