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Case Problem 3.1 The Perezes ’ Good Fortune Angel and Marie Perez own a small pool hall located in southern New Jersey . They enjoy running the business , which they have owned for nearly three years . Angel , a retired professional pool shooter , saved for nearly 10 years to buy this business , which he and his wife own free and clear . The income from the pool hall is adequate to allow Angel , Marie , and their children , Mary ( age 10 ) and José ( age 4 ), to live comfortably . Although he lacks formal education beyond the 10th grade , Angel has become an avid reader . He enjoys reading about current events and personal finance , particularly investing . He especially likes Money magazine , from which he has gained numerous ideas for better managing the family ’ s finances . Because of the long hours required to run the business , Angel can devote 3 to 4 hours a day ( on the job ) to reading . Recently Angel and Marie were notified that Marie ’ s uncle had died and left them a portfolio of stocks and bonds with a current market value of $ 300,000 . They were elated to learn of their good fortune but decided it would be best not to change their lifestyle as a result of this inheritance . Instead , they want their newfound wealth to provide for their children ’ s college educations as well as their own retirement . They decided that , like their uncle , they would keep these funds invested in stocks and bonds . Angel felt that in view of this plan , he needed to acquaint himself with the securities currently in the portfolio . He knew that to manage the portfolio himself , he would have to stay abreast of the securities markets as well as the economy in general . He also realized that he would need to follow each security in the portfolio and continuously evaluate possible alternative securities that could be substituted as