In the private wealth area, the firm has designed five sub$-$portfolios with differing asset allocations that

are used to fund different client goals over a $5-$year horizon. Table below shows the expected returns and

volatilities of the sub$-$portfolios and the probabilities that the sub$-$portfolios will exceed an expected

minimum return. Client Luis Rodr$$guez wants to satisfy two goals.

Goal $1$ requires a conservative portfolio providing the highest possible minimum return that will be met at

least $95\%$ of the time.

Goal $2$ requires a riskier portfolio that provides the highest minimum return that will be exceeded at least

$85\%$ of the time.

Based on the Table above, which sub$-$portfolios best meet the two goals expressed by client

Rodr$$guez$?$

A$.$ Sub$-$Portfolio A for Goal $1$ and Sub$-$Portfolio C for Goal $2$

B$.$ Sub$-$Portfolio B for Goal $1$ and Sub$-$Portfolio C for Goal $2$

C$.$ Sub$-$Portfolio E for Goal $1$ and Sub$-$Portfolio A for Goal $2$

If the client $($Luis Rodr$$guez$)$ wants to allocate $$500,000$ for his kid's college for Goal $1$ and he would

like to have $$300,000$ allocated for Goal $2$ to purchase a condo for his child for the time of the college

education, what is the minimum required amount that Luis Rodr$$guez needs to allocate towards hi $2$

goals today?

A$.$ About $$613K$

B$.$ About $$707K$

C$.$ About $$800K$