CFA Examination Level III 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 1.4 35 Blue-chip growth fund Stock Large-cap growth 1.2 20 Super beta fund Stock Small-cap growth 1.6 10 Conservative fund Stock Large-cap value 1.05 2 Index fund Stock Large-cap index 1 3 No dividend fund Stock Large-cap growth 1.25 25 Long-term zero coupon fund Bond Government — 5 Evaluate the Mueller’s portfolio in terms of the following criteria: a. Preference for “minimal volatility” b. Equity diversification c. Asset allocation (including cash flow needs)

CFA Examination Level III 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...

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CFA Examination Level III

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	1.4	35
Blue-chip growth fund	Stock	Large-cap growth	1.2	20
Super beta fund	Stock	Small-cap growth	1.6	10
Conservative fund	Stock	Large-cap value	1.05	2
Index fund	Stock	Large-cap index	1	3
No dividend fund	Stock	Large-cap growth	1.25	25
Long-term zero coupon fund	Bond	Government	—	5

Evaluate the Mueller’s portfolio in terms of the following criteria:

a. Preference for “minimal volatility”

b. Equity diversification

c. Asset allocation (including cash flow needs)

Answered Same Day Dec 24, 2021

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Robert answered on Dec 24 2021

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CFA Examination Level III 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...

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