Which of the Following Statements Regarding Institutional Investors Is Accurate

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.