SAX and Entity Literals containing content

This question comes as a follow-up to my wellformedness question that I
asked earlier. I already believe that I know the answer but want to double
check. In the case of:

<!DOCTYPE doc [
  <!ENTITY e "<foo>test</foo>">
]>
<doc>
  <child>&e;</child>
</doc>

Should a SAX parser report a startElement and endElement event for <foo>
when it is included?

Thanks,
Jeff Rafter