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Mathew's 401 - K plan offers a choice between and S&P 500 Index Fund, a large-cap stock fund, a blue chip stock fund that seeks

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Mathew's 401 - K plan offers a choice between and S&P 500 Index Fund, a large-cap stock fund, a blue chip stock fund that seeks high dividend income and modest growth, a fund that invests only in investment grade corporate bonds and a fund that that invests only in government bonds. Mathew allocates 20% of his money to each fund. Which of the following statements offers the best critique of Mathew's "1/N" allocation? CD A. Mathew may not be as well diversified as he thinks because the three stock funds probably own many of the same stocks. OB. There is nothing wrong with Mathew's plan. OC. His plan does not provide sufficient liquidity OD. He should have allocated on 1/3 to stocks and 1/3 to each of the remaining funds

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