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 23. The characteristics for four model portfolios follow: Portfolio ER 8% 1 7% ASSET MIX Stock Bond 8% 92% 25 75 61 39 90 10 2 9 10 3 10 14 4 11 25 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. MS. A Mr. B Portfolio 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. 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 23. The characteristics for four model portfolios follow: Portfolio ER 8% 1 7% ASSET MIX Stock Bond 8% 92% 25 75 61 39 90 10 2 9 10 3 10 14 4 11 25 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. MS. A Mr. B Portfolio 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