Question (a) An investor purchased the share of Neptune Corp on 1 Jan 2017 and held the investment until 31 December 2021. Details of Neptune Corp's share price and dividend payout during the period of investment are as follows: Date Share Price 01 jan 2017 8.50 31 Dec 2017 8.80 31 Dec 2018 9.15 31 Dec 2019 9.22 31 Dec 2020 8.87 31 Dec 2021 9.12 Compute: (i) Arithmetic rate of return for 2017, 2018, 2019, 2020 and 2021 separately. (ii) Geometric average rate of return for the entire period of investment from 2017 until 2021. (iii) Logarithmic returns for the entire period of investment from 2017 until 2021. (b) Discuss four differences between investing in stocks and investing in bonds. Dividend 0.30 0.35 0.38 0.22 0.30

During 2017, Latvia Company purchased trading securities with the following cost and market value on December 31, 2017.             Security                                            Cost                                       Market Value             A – 1 000 shares                        200 000                                         300 000             B – 10 000 shares                   1 700 000                                      1 600 000             C – 20 000 shares                   3 100 000                                       2 900 000                                                                  5 000 000                                      4 800 000 The entity sold 10 000 shares of security B on January 15, 2018, for P 150 per share.                         1. What amount of unrealized gain or loss should be reported in income statement for 2017?                         2. What amount should be reported as loss on sale of trading investment of 2018?

Purchases of common stock by jamison december 31 2016 Company Invested In Cost Fair Value Readfield 125,000 115,500 Lee 100,000 80,000 Stern 250,000 300,000 Jones 180,000 190,000 These are classified as trading security by jamison, who uses the portfolio approach During 2017 lee company's stock was sold for 102,000 and jamison purchased common stock of earnhart company at a cost of 163,300 at the end of 2017   the fair values of the trading securities are as follows readfield 111,800 stern 310,000 jones 171,600 earnhart 159,250   a) make the adjustment entry for the portfolio at december 31 2016 to report the fair value of investment in the balance sheet   b) prepare the journal entry to record the sale of lee company's stock in jamisons book in 2017   c) prepare the journal entry to record the purchase of earnharts's common stock by jamison   d) calculate the fair value of the portfolio as of december 31 2017   e) make the adjustment entry for the portfolio at december…