Dilution in risk management
The danger that a client, made overconfident by a bet that materialised, may over-invest in an asset class or security and modify the existing asset allocation, dismantling the risk framework itself.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
Where this is taught
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