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Unformatted text preview: correct answer. Based on a study by Shane Frederick, who created the CRT test, he found out that analytical thinkers and intuitive thinker will switch selections based on framework even with some results. People with opt-in pension plans or 401 k will have a higher percentage of not participating if they are overwhelmed with the amount of mutual funds offered. However, if people are automatically opted into a program, such as a 401 k, the participation rate is much higher when they have to opt out instead of having to opt in. This reveals how people are scared to research the various mutual funds to find one that matches their goals as a result of lack of knowledge, fear, or time. The study shows that with each additional ten mutual funds added onto the list of available choices, the percentage of people who choose to opt-in decreases by several percent....
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This note was uploaded on 09/13/2011 for the course FIN 250 taught by Professor Johansen during the Fall '10 term at Boise State.
- Fall '10