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    Foundations of Financial Management Study Set 4
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    Exam 20: External Growth Through Mergers
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    One Potential Advantage of a Merger to the Acquiring Firm
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One Potential Advantage of a Merger to the Acquiring Firm

Question 36

Question 36

True/False

One potential advantage of a merger to the acquiring firm is the "portfolio effect," which attempts to achieve risk reduction while perhaps maintaining the rate of return for the firm.

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