As the chief investment officer for a money management firm specializing in taxable individual investors, you are trying to establish a strategic asset allocation for two different clients. You have established that Ms. A has a risk-tolerance factor of 7, while Mr. B has a risk-tolerance factor of 25. The characteristics for four model portfolios follow:

ASSET MIX
Portfolio	Stock	Bond	ER	2
1	8	%	92	%	10	%	8	%
2	25		75		11		11
3	70		30		12		15
4	90		10		13		23

a. Calculate the expected utility of each prospective portfolio for each of the two clients. Do not round intermediate calculations. Round your answers to two decimal places.

Portfolio	Ms. A	Mr. B
1
2
3
4

b. Which portfolio represents the optimal strategic allocation for Ms. A? Which portfolio is optimal for Mr. B?

Portfolio -Select- represents the optimal strategic allocation for Ms. A. Portfolio -Select- is the optimal allocation for Mr. B.

C. For Ms. A, what level of risk tolerance would leave her indifferent between having Portfolio 1 or Portfolio 2 as her strategic allocation? Round your answer to the nearest whole number.

a-c, please! Any help will be greatly appreciated.

b. Which portfolio represents the optimal strategic allocation for Ms. A? Which portfolio is optimal for Mr. B? Portfolio - Select- v represents the optimal strategic allocation for Ms. A. Portfolio - Select- v is the optimal allocation for Mr. B. c. For Ms. A, what level of risk tolerance would leave her indifferent between having Portfolio 1 or Portfolio 2 as her strategic allocation? Round your answer to the nearest whole number