Optimal Portfolio Construction for Moderate Risk Tolerance

Maria is a portfolio manager who is tasked with constructing a diversified investment portfolio for a client who has a moderate risk tolerance and a long-term investment horizon. The client’s investment policy statement emphasizes the importance of capital appreciation while maintaining a degree of capital preservation. Given this background, Maria must determine the optimal allocation between equity and fixed income securities.

Which of the following portfolio constructions would best align with the client's objectives?