Questions-AM-CFA Exams Investment, determine, specific

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I have a few questions on Investment Policy Statement-based on CFA past exam questions.
2007-Essay Questions
(1)-Q-1- (a) Risk tolerance for Ingrams is given as above average-due to high asset base. But the portfolio requires an annual return of 7.46%, which is moderate and not very low. Also won’t the total dependence of Ingrams on portfolio returns, post retirement, reduce their ability to take risk.
Is there any specific rule-that can be used to determine whether the asset base is large or small?
(c) Unique circumstances-Isn’t the concentrated holding in employer’s stock a unique circumstances
(2) Q-2-B-When Equity collar is chosen as the most appropriate strategy in Part A.
Exchange funds-How does it eliminate any significant upside price potential associated with the position in Pitt. Doesn’t it just diversify the portfolio? Only outright sale should
eliminate upside price potential. Or I am missing something.