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Piezer’s portfolio in 1998 is reflective of 1/n diversification – the allocation is divided equally among the 5 funds. Often times, participants will only have a basic understanding of diversification and will simply divide their assets equally over the investment options in the plan in order to effectively diversify their portfolio. The portfolio in 2002 is reflective of the status quo bias, which refers to a participant’s tendency to make an original allocation and not change it. With the bear market from 2000 – 2002, it appears that Piezer’s allocation to equities went down dramatically as equities decreased in value, thus increasing his weighting in the money market and bond fund. There does not appear to be any attempts to rebalance or change his allocation.