ECON 424 Midterm: ECON 424 UW Midterm Solutions Fall04
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This is a closed book and closed note exam. However, you are allowed one page of notes (double-sided). Answer all questions and write all answers in a blue book or on separate sheets of paper. Time limit is 1 hours and 20 minutes. Total points = 105: return calculations (30 pts, 5 points each, consider a one month investment in two northwest stocks: amazon and costco. Suppose you buy amazon and costco at the end of september at. P and then sell at the end of the october for. . 74 (note: these are actual closing prices for 2004 taken from. [1] 0. 015209: suppose costco paid a sh. 10 per share cash dividend at the end of october. > r. total. c = (p. c[2] + div. c - p. c[1])/p. c[1] [1] 0. 0024325: suppose the monthly returns on amazon and costco from question (a) above are the same every month for 1 year.
