Comment on the portfolio allocation for Archies ML brokerage account.

ML Brokerage Account Account Name: Archie Peyton Account Number: AB100402 Balances Money Market Price/share Shares Current Yield Fair Market Value Money market 1.00 6,667.00 4.5% $6,667.00 Bonds Maturity Coupon Cost Basis Fair Market Value $10,000 U.S. Treasury note 7.5% $10,351.18 $10,000.00 $15,000 U.S. Treasury bond 25 6.0% 13,138.64 10,579.83 $50,000 U.S. Treasury bond 30 0.0% 4,093.40 3,982.02 $20,000 Davidson debenture 20 17,455.93 16,288.44 $45,039.15 $40,850.29 Stocks Price/share Shares Cost Basis Fair Market Value Stock 1* $ 5.20 2,000 $10,000 $10,400 Stock 2" $ 4.85 1,500 6,750 275 Stock 3* $26.00 500 11,250 13,000 $28,000 $30,675 * These stocks do not currently pay dividends. Mutual Funds Price/share Shares Cost Basis Fair Market Value Emerging growth fund $21.00 500 $12,250 $10,500 Balanced fund $18.00 425 8,925 7,650 $12.00 Municipal bond fund 250 3,500 3,000 $24,675 $21,150 Note: All distributions from these funds are reinvested. Number of Options Option Premium Fair Market Option Expiration Options Stock 2 call options Contracts Exercise Price Value $ 5.50 $3.00 July 2017 $486.37 Stock 3 put options $5.00 $24.00 March 2017 $171.34 $657.71 TOTAL ACUNT VALUE $100,000 MARGIN LOAN BALANCE $7.500 NET ACCOUNT VALUE $92,500