You have recently computed the optimal asset allocation between equities

and bonds for two clients of yours, Ms$.$ Bigturks and Mr$.$ Greyhead. Both

have a mean$-$variance utility function, but Mr$.$ Greyhead has a coefficient

of risk aversion $$kappa$($A$)$ equal to $0\mathrm{.}3$ while Ms$.$ Bigturks has a $$kappa$$

equal to $0\mathrm{.}7.$ If you know that equity is much more volatile than bonds are

but the risk premium on stocks and bonds are approximately similar,

which of the following is most likely?

$$C Cor rre ect to o$!$

Mr$.$ Greyhead$$s optimal allocation is $70\%$ equity and $30\%$ bonds while Ms$.$

Bigturks$$ optimal allocation is $20\%$ equity and $80\%$ bonds