Behavioral Portfolio Theory and Client Risk Preferences

Maria is a financial advisor who recently attended a seminar on Behavioral Portfolio Theory. During her practice, she observed that her clients often exhibited biases that affected their investment decisions. For instance, some clients preferred to invest in familiar companies, regardless of their overall performance or potential risks, while others could not let go of losing investments, hoping that prices would rebound.

In her next meeting with a new client, John, who has a tendency to seek stability over growth, Maria needs to recommend an investment strategy that aligns with his behavioral tendencies while optimizing his portfolio’s potential. Given John's characteristics, which of the following best aligns with the principles of Behavioral Portfolio Theory?