Excerpt: One measure of financial literacy is the quality of portfolio decision-making in 401(k) plans. Applying a qualitative framework to a dataset of nearly three million 401(k) accounts, we estimate that 43% construct 'green' portfolios with balanced exposure to diversified equities, while 26% construct 'yellow' portfolios with possibly too-aggressive or too-conservative equity holdings. [WP2007-14]  MORE >>