Which of the Following Statements Regarding Institutional Investors Is Accurate

question 91

Multiple Choice

Which of the following statements regarding institutional investors is accurate?

• A) Institutional investors tend to be more interested in maximizing the short-term value of their portfolios than in the long-term performance of firms in those portfolios.
• B) High levels of institutional ownership are negatively related to the level of R&D in a firm.
• C) High levels of institutional ownership have a strong, positive relationship with the level of R&D in a firm.
• D) High levels of institutional ownership lead firms to sell strategically unrelated businesses.

---

Definitions:

Existentialism

A philosophy that emphasizes individual freedom, choice, and responsibility, focusing on the meaning of life as discovered through personal experience and introspection.

Engagement

In social, psychological, and educational contexts, engagement refers to the degree of attention, interest, involvement, and passion that people show towards an activity or process.

Existential Theory

A psychological philosophy that emphasizes individual existence, freedom, and choice, positing that individuals are responsible for giving meaning to their lives.

12 Steps

A set of guiding principles outlining a course of action for recovery from addiction, compulsion, or other behavioral problems, originally developed by Alcoholics Anonymous.