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.

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Definitions:

Time Series Components

The underlying patterns and structures that describe how data changes over time, including trend, seasonality, and noise.

Long-Term Trend Component

A pattern in time-series data that captures persistent, gradual changes over long periods.

Time Series

A sequence of data points collected or recorded at successive points in time, often analyzed to identify trends or patterns.

Overall Tendency

A measure used to summarize or describe the central point of a data set, often represented by the mean, median, or mode.