McElroy Company has the following portfolio of investment securities at September 30, 2012, its last reporting date. Trading Securities Cost Fair Value
Horton, Inc. common (5,000 shares) $215,000 $200,000
Monty, Inc. preferred (3,500 shares) 133,000 140,000
Oakwood Corp. common (1,000 shares) 180,000 179,000
On October 10, 2012, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of
Patriot common stock were acquired at $54.50 per share on November 2, 2012. The December 31, 2012, fair
values were: Monty $106,000, Patriot $132,000, and the Oakwood common $193,000. All the securities are
classified as trading.
Instructions
(a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the trading
securities in the last quarter of 2012.
(b) How would the entries in part (a) change if the securities were classified as available-for-sale?

Rate of return, standard deviation, coefficient of variation personal finance problem mike is searching for a stock to include in his current stock portfolio. he is interested in hi-tech inc.; he has been impressed with the company's computer products and believes hi-tech is an innovative market player. however, mike realizes that any time you consider a technology stock, risk is a major concern. the rule he follows is to include only securities with a coefficient of variation of returns below 1.07. mike has obtained the following price information for the period 2015 through 2018:hi-tech stock, being growth-oriented, did not pay any dividends during these 4 years. a. calculate the rate of return for each year, 2015 through 2018, for hi-tech stock. b. assume that each year's return is equally probable and calculate the average return over this time period. c. calculate the standard deviation of returns over the past 4 years. (hint: treat this data as a sample.) d. based on b and c determine the coefficient of variation of returns for the security. e. given the calculation in d what should be mike's decision regarding the inclusion of hi-tech stock in his portfolio?