Study shows how consumers shift expectations and goals

Sally and Harry are about to invest in their company's 401(k) plan. Sally chooses the best performing mutual fund, which has high risks but boasts a 25 percent year-to-date return. Harry, after considering the tradeoffs between risks and rewards, opts for a lower performing fund with an 8 percent year-to-date return. When they receive their next quarterly performance reports, both Sally and Harry discover that their funds have met their initial expectations. Are they satisfied? If not, why? And how could their levels of satisfaction be improved?

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