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You Have Been Employed by Telemetry Medical Instruments (TMI)for Seven

Question 28

Multiple Choice

You have been employed by Telemetry Medical Instruments (TMI) for seven years and participate in their 401 (k) plan by having 5% of your paycheck invested in the plan.You have been so impressed with the performance of the company's stock that you currently have all of your 401 (k) money invested in TMI's common stock.What does prudent investment management suggest that you do about risk?


A) Close out your 401 (k) and put the money in the bank.
B) Increase your payroll deduction from 5% to 10% but keep all funds invested in TMI.
C) Close out your 401 (k) and invest in T-bills.
D) Take some of your investment out of TMI's common stock and invest it in the stocks and bonds of other firms.

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