13. Peter Kerry, age 69, has had bad luck with his investments in recent years and decides to consult you for advice. Kerrys portfolio is composed of 90% stocks and 10% bonds with a total value of US. 2.6 million. Classifying himself as conservative, Kerry blamed the aggressive allocation on a pervious money manager, and says he wants to substantially increase the fixed income weighting of his portfolio.

From his portfolio, Kerry hopes to fund his retirement at the rate of US. 7,000 per month adjusted for inflation. He has also promised a local charity at least US. 2 million upon his death. Kerry is in good health and most of the men in his family have lived into their late 80s.

Required:

i). Based solely on the information presented above, analyze the risk tolerance of the investor.