answersLogoWhite

0


Best Answer

This is generaly a safe rule of thumb as long as the company hasn't over leveraged itself with debt.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Investors should pay a premium for the shares of companies that are engaged in different lines of businesses as diversification provides benefit for investors?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What exactly is a natural gas ETF?

It is a fund with many different types of natural gas stocks and bonds and is useful in diversification which lowers the investors risk. These stocks are from a mix of different companies and types of stock and trades just like the stock.


Diversification is an investment strategy to?

Diversification enables the investor to reduce risk by spreading investments among different companies and types of investing.


Why are standards nessessary in accounting?

Standards are important because it helps businesses become consistent. With a standard, investors can care financial documents of different companies easier.


What are the characteristics of diversification?

Diversification involves spreading investments across different assets or securities to reduce risk. By investing in a variety of assets, such as stocks, bonds, and real estate, investors can minimize the impact of any single investment's performance on their overall portfolio. Diversification can help to increase potential returns while lowering overall risk.


What are opinions on First Investors Corp?

First Investors Corp. and First Investors Financial Services are two very different companies. First Investors Corp. has never been in the car loan business.


What are diversification?

Different diversification rates for two clades of animals.


What is supplemental diversification?

Different diversification rates for two clades of animals


What are Diversification Rates?

Different diversification rates for two clades of animals.


Does Google apply unrelated diversification?

Google applies many different types of diversification.


What are some names of companies that provide cheap hosted solutions for small businesses?

There are many different companies that provide cheap hosted solutions for small businesses. Some of the companies are Small Business by Yahoo as well as Microsoft and AT&T.


What are the problems cause by accounting diversity?

Assist companies entering the Norwegian market The problem with the diversification of accounting by multinational companies is that this will lead to many companies not being able to find ways of appropriating the inflation rate as most will be using different methods.


What does diversification mean in farming?

It means planting a number of different plants to get different crops for sale. Or it means having different animals available for sale. Diversification can protect against price failure for one or two of your diversified plantings or herd.