问题如下：
3. Are Wilhelm’s two statements about his shareholders benefiting from the diversification effect of the merger and about the increase in the stock price, respectively, correct?
选项：
解释：
A is correct.
Both of the statements by Wilhelm are wrong.
The first statement is wrong because diversification by itself does not lower risk for shareholders. Investors can diversify very cheaply on their own by purchasing stocks of different companies (for example, a Modern Auto shareholder could purchase stocks of Sky Systems).
The second statement is also wrong. The P/E ratio will not necessarily remain the same following the merger and is more likely to decline. The pre-merger P/E for Modern Auto is 40/2.50 = 16. After the merger, the EPS would be $130 million/49.375 million shares, or 2.6329. The post-merger P/E will probably fall to 40/2.6329 = 15.19.
老师好，statement 2 里price and earning 间 有关系吗？ 为什么不是earning 上去，price也上去？ 这是是否指earning 上去得会比price 上去得多 所以P/E未必等比上去或说是remains at the same? 谢谢。
