INFO & DATAYOUR CLIENT

Phil & Claire Dunphy, ages 48 and 46, respectively

Children:

Haley, female, age 17

Alex, female, age 14

Luke, male, age 12

The Dunphy's came upon some money due to an inheritance from a distant relative. They have $100,000 to invest. They don't yet have a specific goal for this money but don't plan to need it for 10-15 years. They have other monies available for their children's college education.

They consider themselves MODERATELY CONSERVATIVE investors which means they do not like market fluctuations but they understand they need to own the right stocks for long-term growth. Phil shows his nervousness more than Claire and gets anxious when the stock market goes down significantly. Phil and Claire made a bad investment choice in the past and this contributes to their moderately conservative outlook.

Your portfolio must contain the following:

4 stocks

two mutual funds

one ETF

Bond exposure must be via mutual funds and/or ETFs

You cannot recommend stocks that are priced under $5/share

Where to find investment ideas:

Besides the investments we put on the whiteboards in class, other sources of information are below.

The DOW 30 are companies that reflect the current state of the U.S. economy

S&P 500 are the 500 largest publicly traded companies

Morningstar has a 5-star rating system for mutual funds. Just Googling 4 or 5 star bond funds, will give you a list to look at

You can also Google most popular ETFs or mutual funds

To get ideas about different sectors of the economy see: https://www.barchart.com/stocks/sectors/rankings#/

Sources of information sources that you may find valuable for your research include:

MarketWatch: http://www.marketwatch.com/ (Links to an external site.)

Wall Street Journal: www.wsj.com (Links to an external site.)

You will provide data about your investments. Utilize Yahoo Finance or Morningstar for that info. Sometimes beta shows differently between sites but is somewhat close. I'm ok with that.

IMPORTANT NOTE: When defending/explaining your investment choices, I want to see more than stats. (Though some stats are fine) For stocks, what is it about those companies that make them attractive? Are they innovative? Have a great leadership team? Points will be deducted if you don't also explain the non-data info about your choices.

Please carefully read the case study on Canvas. You may make reasonable assumptions if information is not provided. However, you MUST explain your assumptions if you make any. PART 1: Asset Allocation Based on the information you have about the Dunphy's, what do you recommend their asset allocation be for the inheritance money? Stock % = _______ Bond % = _______ Cash % = _______ What is your rationale for this asset allocation? Please be specific. You may include URLs to help support your position, but you must also provide a thorough explanation for your rationale. Explain your 'why'. PART 2: Investment Recommendations Given their risk tolerance and proposed asset allocation, what specific recommendations do you have for their investments? Keep in mind that bond exposure is required. Be sure to note that in your recommendations. NOTE: It is understood that their final investment mix may be more than these, but we're focusing on these 6 investments. For each investment, explain your rationale for choosing these investments. Please be specific. You may want to look at info such as earnings per share or earnings ratio. (This info doesn't mean much unless you compare to other stocks) You may include URLs to help support your position, but you must also provide a thorough explanation for your rationale. Explain your 'why'. Stock #1: Name, ticker, current price, beta Rationale for Stock #1:

Stock #2: Name, ticker, current price, beta Rationale for Stock #2: Stock #3: Name, ticker, current price, beta Rationale for Stock #3: Stock #4: Name, ticker, current price, beta Rationale for Stock #4: Mutual fund #1: Name , ticker, current NAV, beta Rationale for Mutual fund #1: Mutual fund #2: Name , ticker, current NAV, beta Rationale for Mutual fund #2: ETF: Name, ticker, current price, beta Rationale for ETF: