Problem 11-06 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 24. The characteristics for four model portfolios follow: ASSET MIX Portfolio Stock Bond ER 1 10% 90 % 9% 6% 2 22 78 10 11 3 70 30 11 14 4 89 11 12 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 x X 2 X X 3 X X 4 X 8 b. Which portfolio represents the optimal strategic allocation for Ms. A? Which portfolio is optimal for Mr. B? Portfolio 3 represents the optimal strategic allocation for Ms. A. Portfolio 4 is the optimal allocation for 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