The attractiveness test for evaluating whether diversification into a particular industry is likely to build shareholder value involves determining whether

conditions in the target industry are sufficiently attractive to permit earning consistently good profits and returns on investment. the potential diversification move will boost the company's competitive advantage in its existing business.
shareholders will view the contemplated diversification move as attractive.
key success factors in the target industry are attractive.
there are attractive strategic fits between the value chains of the company's present businesses and the value chain of the new business it is considering entering.

The correct answer is letter "A": conditions in the target industry are sufficiently attractive to permit earning consistently good profits and returns on investment.

Explanation:

Investors are in constant search of companies they can put their money in to obtain profits and increase their wealth. Ratios such as the Debt-to-Equity ratio, Price-Earnings ratio, Return-on-Equity, or Operating profit margin are reviewed to decide in what company to invest and in which one not to.  

Besides, the overall performance of the industry of the target company is analyzed by investors to find out if there are opportunities for growth which may make the firm more attractive.

answer; (consensus);

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.