ECON 424 Midterm: ECON 424 UW Midterm Fall2009 Solutions
Document Summary
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 50 minutes. Consider a one year investment in two assets: the vanguard s&p 500 index (vfinx) and the vanguard short term bond mutual fund (vbisx). S&p 500 fund and one share of the bond fund at the end of september, 2008 for. , and then sell these shares at the end of september, 9. 70 (note: these are actual closing prices taken from. # a) simple returns on sp500 and bond. # b) cc returns on amazon and sp500. [1] 0. 07543: assume you get the same annual returns from part a. every year for the next 10 years. [1] 21262: the annual inflation rate between september 2008 and september 2009 was about.
