Martin Moreno is 42 years old, single, and works as a designer for a major architectural firm. He is well paid and over time 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.

1. In 2006, Martin bought 200 shares of eBay (Nasdaq; symbol EBAY) at $29.77 a share. 

2. In 2013, he bought 250 shares of Facebook (Nasdaq; symbol FB) at $26.89 a share.

3. In 2008, Martin bought 200 shares of United Technologies Corp. (NYSE; symbol UTX)) at $74.92 a share.

4. In early 2009, he bought 450 shares of JPMorgan Chase (NYSE; symbol JPM) at $16 a share.

5. Also in 2009, Martin bought 400 shares of Pepsico (NYSE; symbol PEP) at $52.50 a share.

6. He has $12,000 in a 1 percent money market mutual fund.

Every 3 months or so Martin prepares a complete, up-to-date inventory of his investment holdings.

1. Use a form like Worksheet 11.2 to prepare a complete inventory of Martin’s investment holdings.

2. What is your overall assessment of Martin’s investment portfolio? Does it appear that his personal net worth is improving because of his investments?

3. Based on the worksheet you prepared in Question 1, do you see any securities that you think Martin should consider selling? What other investment advice might you give Martin?

Transcribed Image Text:

Worksheet 11.2, Chapter 11 Exercixe 14 Name(s): Destiny and Robert Payne Type of Investment Stock Stack Stock Stock Bank act Name of investment [stack symball IBM IBM Verizon (VZ) Procter & Gamble Google (GOOG Number of units shares or at her] Date Purchased 100/2011 250 2007 150 2010 200 2014 $ AN INVENTORY OF INVESTMENT HOLDINGS Date: 1/22/2020 Amount of Investment (Quote-$ Amount) 170.40 $ 40.62 $ 61.85 $ $19.98 $ S $ $ $ Cumulative Amount of Annual Income from Dividends, Interest, etc. 17,040 $ 162.00 S 10,155 $ 615.00 9,278 $ 447.00 103,996 8,000 $100.00 $ 148,469 $ 1,324.00 Latest 14,321 Market Value (Quote-S Amount) 143 $ 60.8 S 15,200 126.14 S 18,921 1491.1 $ 298,220 $ 8,000 $ 354,662 Return 0% 0% -15% Sell 56% Hold 109% Hold 187% Buy 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 140% Comments/ Planned Instructions: List number of shares of common and preferred stock purchased in Column C and the purchase price per unit in Column E. The total purchase price is calculated in Column G. For real estate, enter total market value of property under "Marrket value Quote" column I and amount actually invested (purchase price less balance of dbebt) under "amount of investment quote column E. Number of units for real estate is 1 for each property. Under "Latest Market Value," enter market price as of the date of this report (for instance, in December 2020, Pall Corp. was trading at 18.50). The latest market value for real estate is entered as an estimate of what the property would likely sell for (under "market value Quote"). To print with Column M, select "Fit to Page "as the scaling option. The return is computed as the (gain + annual income) divided by purchase price. Actions: Buy, Sell, Hold