Diversified business model

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Reference no: EM132040395

In Finance, a "diversified" business model can be created via merger and acquisition with the express purpose of reducing risk (as measured by standard deviation of financial returns). However, actual results may create outcomes that increase rather than decrease risk. Please explain or clarify why this occurs despite the fact that an Excel model projects very favorable outcomes. Include a real world example to support your answers.

Reference no: EM132040395

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