The Rising Ratio of Divestitures to New Acquisitions Which Occurred

Multiple Choice

The rising ratio of divestitures to new acquisitions which occurred in the past suggests that

A) poison pills are no longer effective as a defense against takeovers.
B) too much diversification strained the operating capabilities of many firms.
C) the portfolio effect has been a highly successful method of reducing risk.
D) multinational firms are increasingly considered highly risky investments.