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Which of the following is an example of a good incentive? Analysts are afraid to recommend sell for a company's stock because that company may

Which of the following is an example of a good incentive?

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

I think 1,4 are wrong and 2,3 are right, and have no idea for number 5.

the answer can be more than one. choose all that are appropriate.

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