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 8, while Mr B has a risk tolerance factor of 27 The characteristics for four model portfolios follow ASSET MIX Portfolio Stock Bond ER 2 1 6 94 7 6 2 23 77 8 11 3 65 35 9 16 4 90 10 10 25 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 Which portfolio represents the optimal strategic allocation for Ms A Which portfolio is optimal for Mr B Portfolio Select 1234Item 9 represents the optimal strategic allocation for Ms A Portfolio Select 1234Item 10 is the optimal allocation for Mr B 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

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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

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 8, while Mr. B has a risk-tolerance factor of 27. The characteristics for four model portfolios follow:

ASSET MIX
Portfolio	Stock		Bond		ER		²
1	6	%	94	%	7	%	6	%
2	23		77		8		11
3	65		35		9		16
4	90		10		10		25

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

Portfolio -Select-1234Item 9 represents the optimal strategic allocation for Ms. A. Portfolio -Select-1234Item 10 is the optimal allocation for Mr. B.
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.