Conglomerates (unrelated businesses in one corporate structure) were, as noted in the Lecture Notes, viewed very favorably by investors in the late 1960s and 1970s. They are currently penalized for their conglomerate status. Two questions: why might this situation occur, and how would you test the "current penalty" conclusion? Do you have any intuition about industries that might be consolidating in the near future? What are the drivers?