ESB Group Is the Parent Company of Many Related Businesses

Multiple Choice

ESB Group is the parent company of many related businesses under its banner. Each share of the parent company is quoted at $220. However, if this had to be assessed by adding the stock prices of each of its strategic business units, the value would only be $200 per share. In this scenario, what has ESB Group created?

A) capital liquidity
B) diversification premium
C) diversification discount
D) demand-pull inflation