1.Calculate for each portfolio, safety first ratio 2. Choose the portfolio with the highest safety first ratio. Illustration Asset Allocation: A B C Expected fund:A(11.5%) B(8%) C(6%) standard deviation:A(18%) B(14%) C(10%) Required; 1. If Robert's risk aversion is 5, recommend an asset allocator for him. 2. The foundation would like to choose an asset allocation that minimizes the problem of returns below its annual spending of 3.5%. Recommend an asset allocation for the problem of the foundation 3-Willian needs to spend 5% from his portfolio annually, he anticipates that inflation will be 24% annually. He incure expenses of 60% basis points a year in investing his portfolio. What asset allocation certisfy William's return requirements.