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6. In most publicly traded firms, institutional investors (mutual funds and pension funds) hold a significant proportion of the stock. Which of the following statements

6. In most publicly traded firms, institutional investors (mutual funds and pension funds) hold a significant proportion of the stock. Which of the following statements best characterizes how most of these investors behave?

a. They are long term investors who take an active role in how the company is run, pushing managers to put stockholder interests first.

b. They tend to go along with incumbent managers and if they are unhappy with a companys direction, they sell their shares.

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