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advantage of diversification

VipinVipin9y ago
kaplan text says that the advantages of diversification increased flexibility better access to capital markets it actually lists 6 of them but I don't understand the above 2 points. how it increases flexibility? how it enables better access to capital markets? thanks
gromitgromitTutor9y ago#1
Not sure about flexibility - except that the company might have more products. Capital markets might view the risk in the group as being diversified so will reduce the cost of finance.
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