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Portfolio Summary Report

I.

Portfolio of Covered Calls (date of selection: 2013/10/03)

1. Stock Selected:

Ticker
JMI CHKR T BX NGG

Stock
Javelin Mortgage Investment Chesapeake Granite Wash Trust AT&T Blackstone Group National Grid plc

2. Reason for selecting the stocks(we used dividend detector to select stocks) (1) The covered call portfolio consists of two groups of stocks. The first group consists of two stocks with highest dividend yield based on dividend detector. However, because these stocks high yield are partially because of its declining stock price, we think they are quite risky. So the second group of stocks consists of three stocks of well-known big companies. (2) We sold the out-of-money call options on those stocks to complete the portfolio. See below table for details

(3) Price of the stocks as of end of December 11th: Stock Current Price Dividend Earned JMI 12.9 0.3 CHKR 10.25 T 33.95 BX 29.15 0.23 NGG 61.09 (4) Return (Annualized, assuming equally weighted, assuming bought two share of stocks and sold two call options with different exercise dates(October 19th and November 16th) for each company on October 3rd) Return(Annulized) Portfolio Return -0.05187542 Notes: all the covered calls got positive return, except Chesapeak Granite Wash Trust, which incurred a 25% loss in the last two month because it stock price declined to $10.25, and cause the portfolio return to be negative. The portfolio performance maybe better if we hold the portfolio for longer period of time and earn more dividends.

Portfolio Summary Report

II.

Portfolio of Preferred Stocks (date of selection: 2013/10/31)

1. Stock Selected:

Symbol PPS-A WFC-J KTN FRC-E WNA-

Security Description
Post Properties Inc., 8 1/2% Series A Cumul Redeem Preferred Shares Wells Fargo & Co., 8.00% Dep Shares Non-cumul Perp Cl A Preferred Stock Series J Structured Products CorTS, Aon Capital A, 8.205% Certificates First Republic Bank, 7.00% Dep Shares Non-Cumulative Series E Preferred Stock Wachovia Preferred Funding Corp., 7.25% Non-cumul Exch Preferred Securities A

2. Reason for selecting the stocks(Quantum Online) (1) The first rule we have is that the call date for the preferred stocks should be relatively a long time in the future. Specifically, the call date for the five stocks are all later than December 2017. (2) Because preferred stocks are essentially income investment, so the second criteria we have is current yield of the preferred stocks. The five stocks we selected all have current yield around 7%. (3) The third criteria we have for selecting the stocks is credit rating. All the stocks we selected have investment grade ratings. See below table for details
Symbol PPS-A WFC-J KTN FRC-E WNASecurity Description
Post Properties Inc., 8 1/2% Series A Cumul Redeem Preferred Shares Wells Fargo & Co., 8.00% Dep Shares Non-cumul Perp Cl A Preferred Stock Series J Structured Products CorTS, Aon Capital A, 8.205% Certificates First Republic Bank, 7.00% Dep Shares Non-Cumulative Series E Preferred Stock Wachovia Preferred Funding Corp., 7.25% Non-cumul Exch Preferred Securities A

Stock NYSE NYSE NYSE NYSE NYSE

IPO Date Cpn Rate Call Date Moodys/S&P Current Price Current Yield 9/27/96 8.50% 10/01/2026 Baa3/BB+ 59.4 7.15% 12/19/07 8.00% 12/15/2017 Baa3/BBB+ 28.44 7.03% 2001/4/1 8.21% Noncallable Baa3/BBB29.19 7.03% 10/21/13 7.00% 12/28/2018 Baa3/BBB 25 7.00% 2012/12/2 7.25% 12/31/2022 Baa3/BBB+ 26.04 6.96%

3. Price of the stocks as of end of December 11th: Symbol Current Price PPS-A 61.6 WFC-J 28.19 KTN 29.25 FRC-E 25.23 WNA-CL 25.44 4. Return (Annualized, assuming equally weighted)

Portfolio

Return(Annulized) 0.01975275

Note: None of the preferred stocks have earned dividends yet, so the actual return will be higher if we hold the portfolio for a longer period of time.

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