Tag: stock allocation
Market risk is a crucial consideration for people relying on financial assets as a major source of support in retirement. Retirement investors often have misperceptions about asset returns and limited knowledge about financial markets, potentially jeopardizing their long-term security…
Abstract This paper examines portfolio choice, trading behavior, and realized rates of return following a panel of nearly seven thousand 401(k) retirement accounts during the April 1994-August 1998 time period. The distribution of equity allocations in the panel is strongly bi-modal: 48% of the average annual equity allocations in the panel are zero, while 22%…
