If a Firm Maintains a Relatively High Level of Investments

If a firm maintains a relatively high level of investments in cash and marketable securities, which of the following statements is true?

A) The firm is probably following a restrictive short-term financial policy.
B) The firm adds little to shareholder wealth by making these types of investments.
C) The chances of the firm facing financial distress are increased by this policy.
D) The firm likely faces a relatively high level of shortage costs.
E) The firm faces a relatively low level of opportunity costs.