The following note is taken from Ford Motor Company€™s 2007 annual report:

1. What amount of gains and losses on available-for-sale securities is reported in the 2007 income statement? How much is realized? How much is unrealized?
2. What is the amount of the net adjustment for unrealized holding gains and losses on available-for-sale securities as of the end of 2007?
3. Using the amounts of realized and unrealized gains and losses, estimate the total economic return on Ford€™s available-for-sale portfolio during 2007 (ignoring interest anddividends).

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Note 5. Marketable, loaned and other securities Investments in available-for-sale securities at December 31, 2007, were as follows (in millions) Unrealized Amortized Cost Fair Gains Losses Value Available for sale securities $ 2 4 U.S. government $- 848 1.948 905 803 101 ..846 Mortgage-backed securities Other debt securities 899 799 Equity securities. Total $4,587 $21 $ 3 $4.605 Investments in available-for-sale securities at December 31, 2006, were as follows (in millions): Unrealized Amortized Cost Fair Gains Losses Value Available for sale securities U.S. government Government-sponsored enterprises. Other debt securities $3.895 4,968 858 1.837 60 $11.618 $ 2 3.897 4,973 853 1,832 95 $11.650 36 Total $48 $16 The proceeds and net gains/(losses) from available-for-sale securities sales were as follows (in millions): Gains/(Losses) 2007 $43 Proceeds 2007 2006 2006 $10.760 $8,803 $(3)