As a finance professional, you are trying to establish a strategic asset allocation for your two clients Joe and Bill. Joe has a risk-tolerance factor of 15, while Bill has risk-tolerance factor of 30. The features of the four portfolios to consider are as follows:

PortfolioStockBondExpected Return (ER)Risk (variance)

110%90%9%10%

225751113

360401318

410001826

Which portfolio represents the strategic optimal asset allocation for Joe and Bill, respectively?

Portfolio 3 for Joe, Port. 4 for Joe

Portfolio 4 for both Joe and Bill

Portfolio 3 for both Joe and Bill

Portfolio 4 for Joe, Portfolio 3 for Bill