Appropriate Portfolio Strategy for Desired Return

Emily is an investment manager preparing to construct a diversified portfolio for a high-net-worth client. The client has specified a target return of 8% per annum and has a moderate risk tolerance. She is considering a mix of asset classes, including equities, fixed income, and real estate investment trusts (REITs). In her analysis, she has identified that equities have a historical return of 10% with a standard deviation of 15%, fixed income has a historical return of 5% with a standard deviation of 3%, and REITs have a historical return of 7% with a standard deviation of 10%.

To achieve the desired return while adhering to the client's risk profile, Emily is assessing how to balance the weightings of these asset classes in the portfolio. She is faced with three potential asset allocation strategies. Which of the following strategies would most likely be appropriate for constructing the client's portfolio?