____ plans are riskier than other employer-sponsored plans due to their lack of investment diversification.

Question

Quizplus · Accepted Answer

Employee stock-ownership plans (ESOPs) are riskier than other employer-sponsored plans because they invest primarily in the employer's stock. This lack of diversification can leave employees vulnerable to fluctuations in the company's stock price and overall financial health. Profit-sharing and salary reduction plans typically offer a range of investment options, which can provide more diversification. Nonqualified deferred-compensation plans may involve some level of risk, but this would depend on the specific investment options offered within the plan.

____ Plans Are Riskier Than Other Employer-Sponsored Plans Due to Their