Which of the following financial institutions would invest the greatest percentage of its assets in common stocks and other long-term investments?
A) Commercial bank
B) Property and liability insurance company
C) Credit union
D) Pension fund

Question

Quizplus · Accepted Answer

Pension funds typically have a long-term investment horizon and are focused on generating returns to meet future obligations to their beneficiaries. Therefore, they often invest a higher percentage of their assets in common stocks and other long-term investments compared to commercial banks, property and liability insurance companies, and credit unions.

Which of the Following Financial Institutions Would Invest the Greatest