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Suppose profits earned by one firm are independent of profits earned by other firms. When managers and shareholders diversify, then poor outcomes of some projects
Suppose profits earned by one firm are independent of profits earned by other firms. When managers and shareholders diversify, then\ poor outcomes of some projects are worsened by favorable outcomes of other projects.\ both managers and shareholders are considered risk loving.\ both managers and shareholders are considered risk averse.\ poor outcomes of some projects can be offset by favorable outcomes of other projects.
uppose profits earned by one firm are independent of profits earned by other firms. When managers and shareholders diversify, then poor outcomes of some projects are worsened by favorable outcomes of other projects. both managers and shareholders are considered risk loving. both managers and shareholders are considered risk averse. O poor outcomes of some projects can be offset by favorable outcomes of other projects
Suppose profits earned by one firm are independent of profits earned by other firms. When managers and shareholders diversify, then\ poor outcomes of some projects are worsened by favorable outcomes of other projects.\ both managers and shareholders are considered risk loving.\ both managers and shareholders are considered risk averse.\ poor outcomes of some projects can be offset by favorable outcomes of other projects.
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