Please post one Primary Thread with responses to both questions below. 

1)  Diversification is good for shareholders.  So why shouldn't managers acquire firms in different industries to diversify a company?

2) Your spouse works for Southwest Airlines and you work for a grocery store.  Is your company or your spouse's company more likely exposed to systematic risk?   Explain.

Discussion Instructions:

Discussion posts should be answered with Fundamental Financial merits along with your experiences and opinions.  Please share your experiences and opinions-we will all benefit if you do!  Thank you.  

The primary thread must have a minimum of 200 words. Your Secondary posts must have a minimum of 100 words.

Please put your name into the subject line. 

Provide References.

Please post your initial response on or before Thursday at 23:59 EST. Provide comments on 1 of your classmates’ posts on or before Sunday at 23:59 EST.