The table below summarizes asset allocations that Blackrock and Charles Schwab recommended to three different types of investors: Conservative investors with high-risk aversion, moderate investors with moderate risk aversion, and aggressive investors with low-risk aversion. The three assets are T-bills, bonds, and stocks. Portfolio Weights (T-bills, Bonds, Stocks)

A. Blackrock Conservative 50 30 20 Moderate 20 40 40 Aggressive 5 30 65

B. Charles Schwab Conservative 20 35 45 Moderate 5 40 55 Aggressive 5 20 75

Are those recommendations by Blackrock and Charles Schwab consistent with portfolio theory? Explain why. Additional Information T-bills should be interpreted as the risk-free asset and bonds and stocks as two alternative risky assets. The weights in the table are in per cent.

Additional info (e.g. historical data) cannot be used