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| Is your company exposed to 401(k) fiduciary risk? Try your hand at these five questions. |
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Dave Cook,
CFO.com | US
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45 percent of the participants were in a plan that offered company stock as an investment option as of year-end 2001, according to a study by the Employee Benefit Research Institute and the Investment Company Institute. Offering company stock does have benefits, such as the alignment of employee and shareholder interests and giving employees the feeling of ownership — but employees who overinvest in such stock may raise your company's fiduciary risk, too.
Question #2 Maintaining a diversified portfolio is fairly standard investment advice — almost commonsense advice, you might think. Yet in the same study, considering only the participants who were in a plan that offered company stock, what percentage of the participants held a 401(k) portfolio consisting of more than 80 percent company stock: 0.5 percent, 2 percent, 5 percent, or 16 percent?
See the answer Return to beginning of quiz
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