Suppose you are able to precisely identify the portfolio of risky assets with the highest Sharpe ratio (the "tangency portfolio"). The tangency portfolio has an expected return of 11% and a standard deviation of 15%. Risk-free treasuries return 3%. You are advising a client whose risk aversion is such that you would recommend they choose the "optimal" portfolio with an expected return of 7%. Which of the following portfolios does this description match?

Group of answer choices

Multiple portfolios would meet this criterion

75% tangency portfolio and 25% risk-free treasuries

The portfolio consisting of risky assets that minimizes risk for a return target of 7%

Not enough information

50% tangency portfolio and 50% risk-free treasuries