Question: Can anyone help me answer this question? Financial advisors generally recommend that their clients allocate more to higher riskreturn asset classes (like equities) if their

Can anyone help me answer this question?

Financial advisors generally recommend that their clients allocate more to higher riskreturn asset classes (like equities) if their investment horizons are long.

a. Is this advice consistent with the basic Mean-Variance model? b. Does adding a shortfall constraint to the Mean-Variance model make a difference? If so, how? If not, why not? c. Assuming investment opportunities change over time, what type of asset return behavior would justify this advice within the Mean-Variance framework?

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