Russ Alonzo is 42 years old, single, and works as a designer for a major architectural firm. He is well paid and
has built up a sizable portfolio of investments. He considers himself an aggressive investor and, because he
has no dependents to worry about, likes to invest in high-risk/high-return securities. His records show the
following information ;
.
- In 2006, Russ bought 200 shares of eBay (NASDAQ; symbol EBAY) at $29.77 a share.
- In 2013 he bought 250 shares of Facebook (NASDAQ; symbol FB) at $26.89 a share.
- In 2008, Russ bought 200 shares of United Technologies Corp. (NYSE; symbol UTX) at $74.92 a share.
- In early 2009, he bought 450 shares of JPMorgan Chase (NYSE; symbol JPM) at $16 a share.
- Also in 2009, Russ bought 400 shares of PepsiCo (NYSE; symbol PEP) at $52.50 a share.
- He has $12,000 in a 1 percent money market mutual fund.
Every three months or so, Russ prepares a complete, up-to-date report on his investment holdings.
Critical Thinking Questions - Use a form like Worksheet 11.2 to prepare a complete inventory of Russ’ investment holdings.( Copy of the
worksheet is attached for your convenience)
(Note: Look in the latest issue of The Wall Street Journal, or pull up an online source such as
http://finance.yahoo.com, or marketwatch.com to find the most recent closing price of the five stocks in Russ’
portfolio.) - What is your overall assessment of Russ’ investment portfolio? Does it appear that his personal net worth is
improving because of his investments? - Based on the worksheet you prepared in Question 1, do you see any securities that you think Russ should
consider selling? What other investment advice might you give Russ?