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Investing Wisely?

Buyer beware. Given today’s chaotic financial environment, the results of a study by Pitt researcher J. Jeffrey Inman and colleagues provide cautionary information for investors in the future. The study, “Saving for Retirement: The Effects of Fund Assortment Size and Investor Knowledge on Asset Allocation Strategies,” published in the Journal of Consumer Affairs, shows that less-knowledgeable investors doubled the portion of dollars they allocated to risky stocks, versus safer bonds or cash, when faced with an increased number of investment options in 401(k) plans. Inman is Albert Wesley Frey Professor of Marketing and a professor of business administration at Pitt.