C. Risk and return

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Your aunt, who is significantly older than your mother, is close to retirement age. Although she loves her job as a software engineer and looks proudly back on a very successful career, she is also looking forward to leaving behind the stress and pressure of work. Her retirement savings are tied up in a very generous pension scheme and mainly invested in shares of her employer, TechStar Ltd.

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Explain to your aunt why such a portfolio is not ideal and how she can achieve the same or similar return with less risk.