Could you please help me to understand how is the second part of this example the demonstration of the framing bias.
Taken from curriculum, chapter on BF and investment processes, sub-segment: BF and portfolio construction, naive diversification
" In one experiment,one group of subjects is given the choice between a stock fund and a balanced (50% stock, 50% bond) fund. The average asset allocation to equities is higher for the second group because in this group, the mode is to allocate assets evenly between 2 funds available for selection (my comment: so far so good). THe use of a heuristic and framing bias appear to have impacted the choices. In a real life example …, by comparing allocations of a plan with 5 stock funds and 1 bond fund and a second plan with 1 stock fund and 4 bond funds, the fund average equity allocation is very difficult. In the first plan, the average equity allocation is 75%, and in the second plan, the average equity allocation is only 34%. This example demonstrates the impact of framing bias (??? )"