10. 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:

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)