Q3. Many defined contribution plan participants tend to hold a large amount of assets in company stock relative to other asset classes. Which of the following characteristics of a DC plan participant’s portfolio best reflects the reason behind this tendency? A) Status quo bias .B) Purely selfish investment motives. C) Endorsement effect.
Q4. Leonard Busch is a employee of Matrix Technologies, and 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 factors is most likely to drive Busch’s investment allocation? A) Status quo bias. B) 1/n diversification heuristics. C) Familiarity.
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发表于 2009-1-19 15:43
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