Sam is 24 and saving for retirement in a 401(k) plan. His contributions are invested in a target-date fund with a retirement date in 40 years. The asset allocation of Sam's retirement fund is most likely:

• A.

  heavily weighted toward equities to grow the principal.

• B.

  60% in equities (both domestic and international) and 40% fixed income (both domestic and international).

• C.

  a mix of stocks and bonds with some cash available for investment in IPOs and other promising investments.