4. Federal Reserve Board Regulation T (Reg. T) allows an initial margin on stock pur- chases of 50% regardless of the volatility of the stock (i.e. 2:1 leverage). The margin of retail accounts is typically governed by Reg. T. By contrast, the margin of profes- sional trading accounts is generally governed by something like SPAN. You see that the hedge fund you recently joined maintains both a retail account and a professional trading account. If your hedge fund is trying to minimize the amount of capital in the margin accounts, in which account will the low-volatility assets be kept and why?