3. (a) Mr. James K. Silber, a euro-based investor just sold Microsoft shares he had bought six months ago. He had invested 10,000 euro to buy Microsoft shares for $125 per share; the exchange rate was $1.20 per euro. He sold the stock for $140 per share and converted the dollar proceeds into euro at the exchange rate of $1.05 per euro. Compute the rate of return on the investment in euro terms. (5 marks)

(b) Mr. Justin Z. Mier, is an international investor, just sold a share of Nestle, a Swiss firm for SFS5,100. He bought the share for SF4,500 a year ago. The exchange rate is SF1.65/US$ now and was SF1.80/US$ a year ago. Mr. Justin received SF140 as a cash dividend immediately before the share was sold. Calculate the rate of return on this investment in term of US dollar.

(5 marks)