Diversification Premium Is a Situation in Which

Multiple Choice

Diversification premium is a situation in which

A) customers have to pay premium prices on products manufactured by firms pursuing unrelated diversification due to the lack of economies of scope.
B) the overall value creation of highly diversified firms is more than the sum of the value created by individual business units.
C) the stock price of related-diversification firms is valued at greater than the sum of their individual business units.
D) shareholders are benefitted from the market capitalization of a highly diversified firm because of its economies of scale.