A report on 401(k) plans notes: Younger participants tended to favor equity funds while older participants
Question:
A report on 401(k) plans notes: “Younger participants tended to favor equity funds … while older participants were more likely to invest in fixedincome securities such as bond funds.”
a. What are 401(k) plans?
b. What does the report mean by “equity funds”? Why might younger investors be more likely to invest in equity funds while older investors are more likely to invest in bond funds?
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a 401k plans are a companysponsored retirement plan where you can save for retirement ...View the full answer
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Related Book For 
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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