Question 2 On 1 January 2020, Belinda and Janice invested $200,000 in stock of Company...
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Accounting
Question 2 On 1 January 2020, Belinda and Janice invested $200,000 in stock of Company X, a utility company. Belinda plans to reinvest all returns in the same stock to the next years. Janice plans to invest additional $150,000 in Stock X at the end of 2021. Janice will handle all returns of Stock X in the same way as Belinda.
Estimated returns of Stock X in coming years are shown as below:
a) Calculate the estimated average annual return earned by Belinda.
b) State the formula to calculate estimated average annual return earned by Janice.
c) Without any calculations, compare and explain the difference of average annual return earned by Belinda and Janice.
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