1. Buffett purchased Berkshire Hathaway stock at $13 a share in 1965. By 2005, BRK stock was trading at $140,000 a share. What is the geometric return for Buffetts investment in 40 years

2. From 2002 to 2006, PBR stock has annual return of 25%, 18%, 22% 28% and 45%. What is the arithmetic average return, geometric return and variance?

3. A typical non-bank money transfer (such as MoneyGram) cost $15. If you were to transfer $150 to someone who needs those money in a different city every two weeks, what is the EAR for the transfer? What if you do it once a day?