As a portfolio manager, I would not recommend a pension to invest

As a portfolio manager, I would not recommend a pension to invest in risky portfolios since there is a lot at stake for employees that expect a guaranteed retirement distribution. This is why portfolios are usually adapted to decrease risk as people get older and they are near retirement age (Mishkin, 2021). I chose portfolio C since it is the safest investment.
S&P 500 index
Technology portfolio
Small-cap growth fund
International equity fund
Venture capital fund
Money market fund
Corporate bond fund
Expected return
Standard deviation
Retirement portfolios are pension plans should invest in relatively safe assets and the current portfolio is simply too risky and too concentrated in one ingle sector which is high tech firms. The reason why I decided to invest heavily on the S&P is to diversity risk. The investment in small cap growth funds is also significant and that should allow a higher-than-average return.
Personally, I believe that a 19.8% risk is still very high for a pension plan, but it is much lower than the other alternatives or the current plan. When deciding what investment sot make, a person must answer if they would be able to tolerate a complete loss. I’m not taking about losing 100% of the money, but what would happen if suddenly the tech sector crashed, and the firms lost 90-95% of heir value. It has happened before and can happen in the future. It is not like that all the market will crash, so the S&P 500 might lose value but not 95%. Even market leaders like Uber have has a terrible stock performance, or if we go a little back in time, we can find Groupon or even Facebook (Yahoo Finance, 2021).
The high-tech sector is extremely volatile and even though it yields very high returns, people that are considering retiring are probably expecting to lose their retirement funds abruptly due to the ambition of a portfolio manager. The risk of the current portfolio is huge, and it is not worth it.
Mishkin, F. S. E. (2021). Financial Markets & Institutions (9th ed.). Pearson.
Jones, C. P., & Jensen, G. R. (2019). Investments: Analysis and Management (14th ed.). Wiley.
Yahoo Finance. (2021). Uber Technologies, Inc. (UBER).