When Paula visited a financial advisor,he warned her that her retirement plans were risky because both her ESOP as well as her salary and benefits depend on her employer's continued survival and profitability.The financial advisor is correct in telling Paula she should diversify her retirement investments.

Question

Quizplus · Accepted Answer

The financial advisor is correct in warning Paula about the risks associated with having all her retirement plans tied to her employer's survival and profitability. Diversifying her retirement investments can help mitigate these risks by spreading her investments across multiple assets or industries.

When Paula Visited a Financial Advisor,he Warned Her That Her