Or 2847*(1+r)^20=5000; r=(5000/2847)^(1/20)-1=0.02856 c. N=53.4 (I/YR=4.65; FV=3500; P/YR=12; N=?); 2847*(1+0.0465/12)^N=3500; N=ln(3500/2847)/ln(1+0.0465/12)=53.4 months Problem 3 to 4: The following information is relevant for solving Problem 3 to 4. Consider the following price and dividend history for stock XYZ: Year Beginning-of-Year Price Dividend Paid at Year-End 2002 $100 $4 2003 $110 $4 2004 $90 $4 2005 $95 $4 An investor buys three shares of XYZ at the beginning of 2002, buys another two shares at the beginning of 2003, sells one share at the beginning of 2004, and sells all four remaining shares at the beginning of 2005. Problem 3: a. What are the arithmetic and geometric average 1-year holding period returns of this investment? B. What is the 2-years holding period return in 2004 (i.e., the 2-years holding period return in the period 2002 to 2004)? C. What is the 3-years holding period return of this investment in 2005?