Mr. Arvind Mehta, a retired corporate executive, has accumulated a diversified investment portfolio consisting of equity shares, debt securities,…

Mr. Arvind Mehta, a retired corporate executive, has accumulated a diversified investment portfolio consisting of equity shares, debt securities, gold ETFs and real estate investment trusts (REITs). He consults his investment advisor annually to review his portfolio. During the latest review, the advisor presents different approaches to asset allocation. In one approach, the portfolio is designed after considering both the prevailing capital market outlook and Mr. Mehta's financial objectives and constraints. In another approach, the portfolio is constructed using long-term historical return, risk and covariance data and is periodically rebalanced to restore the desired asset mix. A third approach assumes that Mr. Mehta's risk tolerance remains unchanged but modifies the asset allocation whenever expectations about capital market conditions change. Finally, the advisor explains an approach under which Mr. Mehta's exposure to risky assets increases as his portfolio value grows and decreases if the portfolio value falls, thereby protecting a minimum level of wealth. Based on the above case scenario, answer the following questions.