What does this imply about diversification

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Reference no: EM131245627

Empirical studies have established that the betas of conglomerate firms have been significantly above 1.

What does this imply about diversification as a strong motive for conglomerate mergers?

Over a long period of time would you expect the risk-adjusted performance of conglomerate firms to be significantly different from the risk-adjusted performance of a broad market index? Explain.

Reference no: EM131245627

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