Alice Minks is a high net worth investor who owns a well-diversified portfolio of fixed income securities. Minks hopes to use part of the future value of her portfolio to purchase a beach house in five years. Minks forecasts the future value of each security in her portfolio based on expectations of interest rate movements, government actions, and security analysis. Which decision is most consistent with modern portfolio theory?

		Minks chooses her ten securities based on expected utility maximization.
		Minks invests in several bonds issued by real estate firms with properties located along the coastline.
		Minks restricted her portfolio to only investment graded bonds because of previous losses in speculative graded bonds.