Question

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.

Answer

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