Under the Variable- Ratio Plan, Additional Speculative Investments Are Made

question 51

Multiple Choice

Under the variable- ratio plan, additional speculative investments are made when the ratio

• A) of conservative investments to speculative investments increases by 10%.
• B) of the realised rate of return falls below the desired rate of return by 1% or more.
• C) of the value of the speculative investments to the total portfolio value drops below a predetermined level.
• D) of the rate of return on the speculative investments exceeds the overall market return by 1% or more.

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Definitions:

Employee Stock Ownership

A program that gives employees ownership interest in the company through stock ownership.

Stock Trust

A legal entity that holds and manages stock investments on behalf of its beneficiaries.

Managed Behalf

Acting or making decisions for another person or entity, typically in a professional or representative capacity.

Employee Participation

Involvement of employees in the decision-making processes of an organization, aiming to increase engagement and morale.