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Which of the following is an example of a good incentive? (Can choose more than 1 option) Analysts are afraid to recommend sell for a
Which of the following is an example of a good incentive? (Can choose more than 1 option)
- Analysts are afraid to recommend sell for a company's stock because that company may not do business with their employer in the future.
- Investors want to make money so they invest in companies that are doing well.
- Pension funds invest in high-quality companies because they want to take care of their retirees.
- CEOs take large risks with their companies, because a good part of their annual compensation is tied to the share price.
- An investment manager has an incentive to imitate the strategies adopted by other managers, because the consequence of being wrong would be less severe.
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