While the value of a stock is independent of the call holder's behavior,the value of an R&D investment is not independent of the investor's behavior.

Question

Quizplus · Accepted Answer

The value of an R&D investment can be influenced by the investor's behavior such as how much they fund the research, the expertise and involvement of the investor in the research process, and the timing of the investment. Therefore, the statement is true. In contrast, the value of a stock is determined by market factors and is not impacted by the behavior of a particular call holder.

While the Value of a Stock Is Independent of the Call