Constructing a Diversified Portfolio

Emma is an individual investor who is looking to construct a diversified portfolio. She has a risk tolerance that indicates she can take on mild risks and is primarily focused on capital appreciation over the long term. She is considering an allocation strategy that balances equities and fixed income securities.

In making her investment decisions, Emma should consider how her chosen asset allocation aligns with her investment objectives and risk profile. Based on her situation, which of the following approaches would be the most appropriate for Emma to construct a well-diversified portfolio?