The company’s management is not happy with the bared risk for the expected Portfolio value return and has reached a subject matter expert to try to re-align the risk level with the management expectations. The expert stated that it is preferable to diversify the portfolio components in order to get more results. In that case, you

The company’s management is not happy with the bared risk for the expected Portfolio value return and has reached a subject matter expert to try to re-align the risk level with the management expectations. The expert stated that it is preferable to diversify the portfolio components in order to get more results. In that case, you
A . Disagree with the expert because the company should have came to you before reaching an outside-party
B . Disagree with the expert because diversification will bring more complexity, thus more risks
C . Agree with the expert because he is the expert and you should abide by his recommendations
D . Agree with the expert because diversification in a portfolio may allow for the same portfolio expected return with reduced risk

View Answer

Answer: D