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 are typically long-term investors and have a higher risk tolerance than other financial institutions. Therefore, they are more likely to invest a greater percentage of their assets in common stocks and other long-term investments. Commercial banks, property and liability insurance companies, and credit unions usually have more conservative investment portfolios and lower risk tolerance.

Which of the Following Financial Institutions Would Invest the Greatest