What role does diversification play in risk management

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Reference no: EM131334857

1. What types of risks should shareholder wealth-maximizing managers seek to offset in a firm they are managing? Why?

2. How can the acquisition of additional information be an effective tool of risk management? Give an original example of the use of this technique.

3. What role does diversification play in risk management strategies?

Reference no: EM131334857

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