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


Answer: C

Business

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