You are acting as a consultant to an individual who is $45$ years old, in good health, and has plans to retire in $15$ years. Your client is a manager at the local office of a large multinational corporation. Her salary and incentive compensation are currently $$225,000$ per year. Although she and her family live well, she has been modest in her expenditures and managed to accumulate a portfolio valued at $$1$ million during her $12$ years at the firm. Her current salary affords her an opportunity to continue adding to her portfolio, however, she plans to direct her disposable funds to a vacation home near Hilton Head, SC rather than continuing to accumulate funds in her portfolio. This will allow her to pay off the mortgage on the home at Hilton Head and be debt$-$free by the time she retires. She is the primary provider of funds for her family and her children will be finished with college and established as independent adults at the time of her retirement. She needs her current portfolio to grow in value over the next $15$ years such that she has at least $$2$ million at that time to generate income for her future.

Determination of the complete portfolio $($Risky is based on the $10$ mutual funds and Risk$-$free is based on an allocation to the security yielding three percent used in part three above$).$ How will you determine the level of risk aversion for this client given the information presented in the Background section above? Explain what each of these terms means in simple terms.