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Q » How do conglomerates reduce risk by diversifying investments across industries?
30 Oct, 2025
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A » Conglomerates reduce risk by diversifying investments across various industries, thereby minimizing the impact of downturns in any single sector. This strategic diversification allows them to leverage stable revenue streams from different markets, balance potential losses, and capitalize on growth opportunities. By spreading investments, conglomerates can sustain financial stability and enhance resilience against economic fluctuations, ultimately safeguarding shareholder value.
30 Oct, 2025
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