ECON 424 Midterm: ECON 424 UW Midterm Solutions Summer2011
Document Summary
This is a closed book and closed note exam. However, you are allowed one page of notes (8. 5 by 11 double-sided) and the use of a calculator. 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 1-month investment in two assets: the vanguard s&p 500 index (vfinx) and the vanguard emerging markets stock index (veiex). Suppose you buy one share of the s&p 500 fund and one share of the emerging markets fund at the end of june, 2010 for. , and then sell these shares at the end of july, 2010. [1] 0. 02925: assume you get the same monthly returns from part a. and b. every month for the next year. > r. vfinx. a = (1 + r. vfinx)^12 - 1. > r. veiex. a = (1 + r. veiex)^12 - 1.
