^&* 2. Which of the following best describes the potential problem with Mr. Higgins’s investment strategy?

a. He will underestimate the risk of his portfolio and underestimate the impact of an event on stocks.

b. He will overestimate the risk of his portfolio and overestimate the impact of an event on stocks.

c. He will underestimate the risk of his portfolio and overestimate the impact of an event on stocks.