a.What can you say about the magnitude and the volatility of housing price appreciation in the short, medium and long run?

b.Are the results from question 5 consistent with the theory of price appreciation

Time Period Houston Nominal Miami Real Annual Miami Nominal Annual Annual Price Price Appreciation Houston Real Annual Price Appreciation Rate Appreciation Rate Rate Price Appreciation Rate 02 2007 - 04 2009 (2.5 years) 10.393% 0.67% -17.96% 0.11% Q1 2002 - Q1 2006 (4 years) 26.89% 4.77% 117.64% 13.88% 02 1986 - 02 1995 (9 years) 11.15% 1.93% 34.09% 23.93% Q2 1978 - 02 2018 (40 years) 165.15% 67.78% 223752.8% 62.54%