One of the disadvantages of an ESOP is that the stock is in an undiversified investment portfolio . Which of the following statements is correct about an ESOP that defines normal retirement age to be 66 ? 1. An employee may require that 25 percent of the account balance be diversified so long as he / she is age 65 and completed 10 years of service . 2. An employee may require that 50 percent of the account balance be diversified during their sixth & final year of their qualified election period that begins when the employee is deemed a qualified participant . A. Neither 1 nor 2 B. 1 only C. 2 only D. 1 and 2
One of the disadvantages of an ESOP is that the stock is in an undiversified investment portfolio . Which of the following statements is correct about an ESOP that defines normal retirement age to be 66 ? 1. An employee may require that 25 percent of the account balance be diversified so long as he / she is age 65 and completed 10 years of service . 2. An employee may require that 50 percent of the account balance be diversified during their sixth & final year of their qualified election period that begins when the employee is deemed a qualified participant . A. Neither 1 nor 2 B. 1 only C. 2 only D. 1 and 2
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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One of the disadvantages of an ESOP is that the stock is in an undiversified investment portfolio . Which of the following statements is correct about an ESOP that defines normal retirement age to be 66 ?
1. An employee may require that 25 percent of the account balance be diversified so long as he / she is age 65 and completed 10 years of service .
2. An employee may require that 50 percent of the account balance be diversified during their sixth & final year of their qualified election period that begins when the employee is deemed a qualified participant .
A. Neither 1 nor 2
B. 1 only
C. 2 only
D. 1 and 2
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