ECON 424 Midterm: ECON 424 UW MidtermWinter02
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This is a closed book and closed note exam. However, you are allowed one page of handwritten notes. Answer all questions and write all answers in a blue book or on separate sheets of paper. Time limit is 2 hours and 10 minutes. Total points = 100: return calculations (20 pts) Use the end of month price data for the s&p 500 index in the table below to answer the following questions. Compare this return to the actual 1 year simple return between december, 2000 and december, 2001: suppose the consumer price index (cpi) for december 2000 is equal to 100 and that the cpi for december 2001 is 105. Compute the simple 1 year real return between december 2000 and. December 2001: what is the continuously compounded 1 month return between december, 2000 and. Suppose you can get this return every month for the next year. Compute the continuously compounded annual real return between.
