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Both foreign direct investment (FDI) and foreign portfolio investment (FPI) are related to investment in a country. Which of the following is incorrect regarding FDI and FPI?

Both foreign direct investment (FDI) and foreign portfolio investment (FPI) are related to investment in a country. Which of the following is incorrect regarding FDI and FPI? Correct Answer FII invests in technology-oriented enterprises, whereas FPI invests in traditional business setups

Related Questions

Foreign investment can be made through which of the following routes ? (i) Foreign Direct Investment (FDI) (ii) Foreign Portfolio Investment (FPI) (iii) Private Equity Investment (PEI) (iv) Foreign Venture Capital Investors (FVCI)  Choose the correct answer from the code given below : 
Foreign investment can be made through which of the following routes?
1. Foreign Direct Investment (FDI)
2. Foreign Portfolio Investment (FPI)
3. Private Equity Investment (PEI)
4. Foreign Venture Capital Investors (FVCI)
Choose the correct answer
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Which of the following would include Foreign Direct Investment in India? 1. Subsidiaries of foreign companies in India 2. Majority of foreign equity holding in Indian companies 3. Companies exclusively financed by foreign companies 4. Portfolio investment Select the correct answer using the codes given below:
Tamilnadu ended 2021-22 fiscal with foreign direct investment (FDI) of about $3 billion the fourth-highest FDI for the fiscal. Which state topped the table of highest FDI flow among the Indian states for the 2021-22 fiscal year?
Choose the correct code for the following statements being correct or incorrect. Statement I : When the two securities returns are perfectly positively correlated, the risk of their portfolio is just a weighted average of the individual risks of the securities. In such case, diversification does not provide risk reduction but only risk averaging. Statement II : Total risk of a portfolio of two risk securities can be completely eliminated when their returns are perfectly negatively correlated and their proportionate holdings in the portfolio are inversely related to the relative individual risks of the securities. 
Both Foreign Direct Investments (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?