Louise and Christopher Maclin have purchased their house and made the donation to the local charity. Now that an investment policy statement has been prepared for the Maclins, Grant Webb recommends that they consider the strategic asset allocation described in Table I.
a. Identify aspects of the recommended asset allocation in Table I that are inconsistent with the Maclins€™ investment objectives and constraints. Support your responses.
b. After further discussion, Webb and the Maclins agree that any suitable strategic asset allocation will include 5 to 10% in U.K. small-capitalization equities and 10 to 15% in U.K. large-capitalization equities. For the remainder of the portfolio, Webb is considering the asset class ranges described in Table J.
Recommend the most appropriate allocation range for each of the asset classes in Table J. Justify each appropriate allocation range with a reason based on the Maclins€™ investment objectives and constraints. No calculations arerequired.

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Table I Expected Annualized Pretax Standard Allocation Current Yield Total Return Deviation Projected Recommended Asset Class 15.0% 55.0 0.0 10.0 5.0 15.0 1.0% 5.0 11.0 9.0 10.0 6.0 6.7 2.5% 11.0 25.0 21.0 20.0 48.0 1.0% 4.0 U.K. corporate bonds U.K. small-capitalization equities U.K. large-capitalization equities U.S. equities* Barnett Co. common stock Total portfolio 100.0 Table J Asset Class U.K. corporate bonds U.S. equities Barnett Co. common stock Allocation Ranges 0%-3% 5%-10% 15%-20% 10%-20% 30%-40% 50%-60% 0%-5% 10%-15% 20%-25% 10%-15% 0%-5% 20%-25%