Evaluate the muellers portfolio in terms of asset allocation

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Reference no: EM13923359

Peter and Andrea Mueller have built up their $600,000 investment portfolio over many years through regular purchases of mutual funds holding only U.S. securities. Each purchase was based on personal research but without consideration of their other holdings. They would now like advice on their total portfolio, which follows:

	Type	Market Sector	Beta	Percent of Total
Andrea's company stock	Stock	Small-cap growth	1.40	35
Blue-chip growth fund	Stock	Large-cap growth	1.20	20
Super-beta fund	Stock	Small-cap growth	1.60	10
Conservative fund	Stock	Large-cap value	1.05	2
Index fund	Stock	Large-cap index	1.00	3
No-dividend fund	Stock	Large-cap growth	1.25	25
Long-term zero-coupon fund	Bond	Government	-	5

Evaluate the Muellers' portfolio in terms of the following criteria:

a. Preference for "minimal volatility"

b. Equity diversification

c. Asset allocation (including cash flow needs)

Reference no: EM13923359

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