My interpretation of this mess:
* Wu’s cash salary (financial capital) is lower, so wt of (equity-like) human capital is higher, therefore higher allocation to risk free to offset equity.
* Lee’s cash salary (financial capital) is higher, so wt of (equity-like) human capital is lower, therefore lower allocation to risk free to offset equity.
* Tom (from Q6) should also have small allocation to risk free, but since he doesn’t have any risk free right now, he should be investing “predominantly in fixed income assets” to build up that asset class. Ultimately though, rf will still be a minority asset class, consistent with figure 9, 11, and Wu/Lee.