swaptiongamma Wrote: ------------------------------------------------------- > Answer is C as per Schweser. > > > Can someone explain why the answer is C? > > A) Diversification is always under criticism > because investor could add different stocks to > portfolios, rather than company doing it for them > by merging - which might take yrs > B) ??? > C) That’s the motivation why managers would try to > merge - so that they have bigger firm to manage > and bigger team under them and SECURE their > positions. It sure is a criticism to > diversification just for managers interest. I’ve seen this format before. A) Steal underpants B) ??? C) Profit