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)

COMPANY: Andrea

TYPE: Stock

MARKET SECTOR: small cap growth

BETA 1.4

PERCENT OF TOTAL: 35

COMPANY:Blue-Chip

TYPE :Stock

MARKET SECTOR: Large cap

BETA 1.2

PERCENT OF TOTAL: 20

COMPANY:Super Beta

TYPE: Stock

MARKET SECTOR: small cap

BETA: 1.6

PERCENT OF TOTAL: 10

COMPANY:Conservative fund

TYPE: Stock

MARKET SECTOR: large cap index

BETA: 1.05

PERCENT OF TOTAL:2

COMPANY:Index Fund

TYPE:Stock

MARKET SECTOR: large cap index

BETA: 1.00

PERCENT OF TOTAL:3

COMPANY:No dividend fund

TYPE: Stock

MARKET SECTOR: large cap growth

BETA: 1.25

PERCENT OF TOTAL:25

COMPANY:Long term zero coupon

TYPE: Bond

MARKET SECTOR: Government

BETA: *

PERCENT OF TOTAL: 5