25. A manager of a mutual fund has taken significant credit exposure to Europe and Asia. A manager of a mutual fund has taken significant credit exposure to Europe and Asia. Concerned with uncertain market conditions, the manager wants to change the assumptions in the fund's risk models by increasing the default correlation between bonds issued in Europe and bonds issued in Asia. If the default correlation is increased and all the other parameters are kept the same, which of the following is true? A. The expected loss of the portfolio will increase. B. The unexpected loss of the portfolio will decrease. C. The expected loss of the portfolio will decrease. D. The unexpected loss of the portfolio will increase