Sentence Correction (SC) | Re: Asset allocators create portfolios, often in the form of mutual funds,

Hi I have a couple of questions regarding this problem.
1. what is the "which" in option B actually referring to? mutual funds/ portfolios?
2. In option A isnt the "with the intention......" telling us more about why asset allocators create portfolios? So why is a wrong choice if we look at it through the meaning lens?
3. In E if the "intended" was omitted from "So intended as", would doing so make this option correct?

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