Behavioral Finance - Reading 11: Investment Decision Making allocation, Investment, only, investment

mayanfang1

Q2. Leonard Busch is a participant in the Matrix Technologies defined contribution plan. The assets in the plan are the only investments he owns. Busch’s investment allocation is shown below. 

Allocation	Investment Option
20%	Yukon Large Cap Growth Fund
40%	Matrix Technologies Company Stock
15%	Yukon Intermediate Bond Fund
10%	Yukon Money Market Fund
15%	Yukon International Stock Fund

Which of the following best describes fiduciary position of Matrix Technologies as it relates to ERISA requirements and Busch’s allocation? Matrix Technologies is:

A)   in violation of ERISA requirements by allowing Busch to hold more than 10% of his plan assets in company stock.

B)   only in violation if the employer forces Busch to invest any funds in company stock.

C)   not in violation of ERISA requirements because the decision to invest a large percentage of funds in company stock is up to the participant.

deqiang

thanks.

rawrdinosaur

ty

rawrdinosaur

ty

Figo-wong

Cognitive dissonance

suodi

[em50]

rawrdinosaur

thx

maxsimax

tq

maxsimax

tq

思霖

Thank you!