Diversification increases when the shareholder includes stocks in the portfolio from industries whose returns are not highly correlated with each other. We also consider two additional proxies that capture the relative importance of the firm being taken public in the shareholders' portfolio.
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Diversification increases when the shareholder includes stocks in the portfolio from industries whose returns are not highly correlated with each other. We also consider two additional proxies that capture the relative importance of the firm being taken public in the shareholders' portfolio.
Explanation:
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