Calculate the nominal and real annual rate of housing price appreciation

rate for Miami and for Houston for the requested different time periods using the housing price index data and the inflation index data provided to you in tab A5 of the Excel spreadsheet. In total, you need to calculate 16 values that will appear in the 16 yellow cells

of that Excel tab.

Given your results from the previous problem:

What can you say about the magnitude and the volatility of housing price appreciation

in the short, medium and long run?

i do not understand this problem, please help.

Time Period Miami Nominal Annual Price Houston Nomina Miami Beal Amal Houston Real Annual Pricepreciation Price Appreciation ARRAPRADES CARREGARRASIL REBRAREAS CORRER 8 fx D G a Miami 1 2 3 5 6 1 2 3 4 1 2 3 4 1 2 3 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Year 1975 1975 1975 1975 1976 1976 1976 1976 1972 1972 1977 1977 1978 1978 1978 1978 1979 1979 1979 1979 1980 1980 1980 1980 Houston Inflation 527 53.6 54.6 55.5 51.59 55.9 58.32 56.8 58 57.6 57.8 58.2 59.94 59.5 65.9 60.7 64.23 61.4 67.66 62.1 69.45 74.66 652 73.44 66.5 76.89 67.7 78.71 698 83.32 723 84.67 74.6 85.55 76.7 88.07 80.1 91.92 82.7 90.89 84.0 92.8 863 34.85 36.04 36.44 37.99 37.12 39.2 40.28 41.91 39.72 43.05 42.34 45.72 48.42 48:39 53.62 56.79 586 57.43 63.32 64.88 1 2 3 4 1 2 3 4 1 2 3 z Read Only - You fx D du 24 25 26 27 28 29 30 31 1980 1980 1981 1981 1981 1981 1982 1982 1982 1982 1983 1983 1983 1983 1984 1984 1984 1984 1985 1985 1985 1985 1986 1986 1986 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 33 34 35 36 63.32 64.88 67.13 66.99 55.28 66.65 69.89 70.22 67.47 70.26 68.96 68.45 68.88 69.11 67.73 69.56 67.03 68.46 68.91 67.76 66.98 66.99 68.6 70.2 71.17 90.89 92.8 89.81 96.01 97.58 100.37 106.2 107.95 105.65 107.81 107.81 108.4 107.62 106.86 103.45 103.37 103.95 101.38 97.99 95.83 94.32 92.13 93.16 944 92.61 84.0 86.3 88.5 90.6 932 94.0 94.5 97.0 97.9 97.6 97.9 99.5 100.7 101.3 102.6 103.7 106.0 106.3 106.4 107.6 108.3 109.3 108.8 109.5 110.2 37 39 40 41 4 1 2 3 45 46 47 4 1 2 3 fx B c D E F G 46 47 1 2 3 4 1 2 3 4 SO 51 52 53 1 2 3 55 56 57 58 59 60 61 1 1986 1986 1986 1986 1987 1987 1987 1987 1988 1988 1988 1988 1989 1989 1989 1989 1990 1990 1990 1990 1991 1991 1991 1991 1992 1992 1992 1992 1993 1993 3 4 1 2 3 4 68.6 70.2 71.17 7101 68.3 72.51 73.64 74.43 7452 76.5 77.69 79.09 79.33 80.13 81.66 81.51 83.21 82.82 83.65 83.36 84 58 84.73 85.38 86.96 87.99 87.73 89.04 89.15 90.45 92.76 93.16 94.4 92.61 88.22 88.1 86.56 83.78 81.55 81.87 84.32 85.OS 85.59 86.37 88.45 90.37 90.89 91.48 92.53 93.74 93.56 94.46 95.65 96.21 97.19 98.89 98.42 100.18 100.07 100.38 100.87 108.8 109.5 1102 110.5 1121 113.5 115.0 115.4 116.5 118.0 119.8 120.5 1223 124.1 125.0 126.1 128.7 129.9 132.7 133.8 135.0 136.0 1372 137.9 139.3 1402 141.3 141.9 143.6 144.4 65 66 67 1 2 3 4 1 2 3 70 71 72 73 74 75 1 2 A Read Only - You fx 4 B D E F 139.3 140.2 70 71 72 73 74 75 76 77 78 1 2 3 4 1 2 3 4 81 82 83 84 85 85 87 88 1992 1992 1992 1992 1993 1993 1993 1993 1994 1994 1994 1994 1995 1995 1995 1995 1996 1996 1996 1996 1997 1997 1997 1997 1998 1 2 3 4 1 2 3 4 87.99 87.73 89.04 89.15 90.45 92.76 95.61 96.95 97.65 98.55 98.84 98.97 100 101.5 103.64 105.29 106.61 106.01 105.67 107.19 108.04 107,68 108.08 110.14 113.35 98.89 98.42 100.18 100.07 100.38 100.87 101.68 102.25 102.25 101.71 101.67 100.26 100 101.67 102.16 102.74 104.24 103.74 103.99 104.63 104.47 106.25 107.3 108.45 110.87 141.3 141.9 143.6 144.4 145.1 145.8 1472 148.0 149.4 149.7 1514 152.5 153.2 153.5 155.7 156.7 157.8 158.6 160.0 160.3 161.2 161.3 162.2 1 2 3 4 1 2 3 4 1 91 92 93 X Read Only - You fx 4 P C D E F 93 94 95 96 97 4 1 2 3 4 1 2 3 4 1 2 3 99 100 1997 1998 1998 1998 1998 1999 1999 1999 1999 2000 2000 2000 2000 2001 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 2004 2004 2005 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 4 1 2 3 110.14 113.35 113.35 113.73 115.91 116.32 115.6 116.9 118.65 121.32 123.09 125.16 128.15 132.2 136.56 140.36 144.98 149.12 154.71 161.09 166.01 170.76 176.21 180.8 190.87 197.66 206.91 220.75 230.2 242.23 108.45 110.87 111.99 114.31 115.72 117.28 120.24 123.21 125.78 127.26 129.24 130.99 132.03 136.29 137.76 139.61 140.99 141.7 143.45 145.22 147.36 148.43 149.34 150.23 151.72 153.28 154.66 156.69 157.68 160.22 161.3 1622 163.0 163.6 163.9 165.0 166.2 167.9 168.3 171.2 1724 173.7 174.0 176.2 178.0 178.3 176.7 178.8 179.9 181.0 180.9 1842 183.7 185.2 184.3 1874 189.7 189.9 190.3 193.3 1 2 3 4 1 2 3 1 2 3 4 1 Read Oniy YOL fx 4 C E F 120 121 122 3 4 1 2 3 4 1 2 3 4 1 2 3 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 1 2 3 4 220.75 230.2 242.23 258.75 276.27 294.66 309.5 321.9 331.11 337.48 342.38 343.25 337.97 331.22 315.56 291.89 256.05 236.14 226.16 213.32 199.05 200.55 195.61 193.88 196.88 194.03 184.56 180.05 181.61 184.29 100 52 156.69 157.68 160.22 161.23 163.58 166.15 168.72 171.22 173.67 175.05 177.33 180.2 180.99 182.13 184.22 184.8 185.97 185.6 188.27 186.76 185.45 185.04 183.8 184.21 184.76 184.45 181.18 180.76 182.19 182.73 102 QA 189.9 190.3 193.3 194.5 198.8 196.8 199.8 202.9 202.9 201.8 205.352 208.352 208.490 210.036 213.528 218.815 218.783 210.228 212.709 215.693 215.969 215.949 217.631 217.965 218.439 219.179 223.467 225.722 226.889 225.672 1 2 3 143 144 1 2 3 145 146 147 148 149 1 2 3 SER 1 fx 4 1 2 3 4 2011 2011 2011 2011 2012 2012 2012 2012 1 2 3 4 2013 1 2 3 1 2 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 3 4 184.56 180.05 181.61 184.29 180.57 181.79 186.15 193.27 196 205.2 210.22 217.64 222.3 228.56 236.95 242.48 244.42 251.76 260.12 265.12 272.37 277.33 283.61 289 295.67 302.09 306 313.69 319.81 327.43 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 181.18 180.76 182.19 182.73 183.84 186.3 187.69 189.83 191.83 195.45 200.46 205.1 209.17 217 224.51 227.68 230.27 237.35 240.63 241.86 242.67 247.59 250.61 253.22 254.5 262.22 262.74 267.44 269.76 277.07 223.467 225.722 226.889 225.672 229.392 229.478 231.407 229.601 232.773 233.504 234.149 233.049 236.293 238.343 238.031 234.812 236.119 238.638 237.945 236.525 239.261 241,038 241.428 241.432 243.524 244.737 245.708 246.524 249.554 251.989 1 2 4 1 2 4 1 2 3 1 2 AC Time Period Miami Nominal Annual Price Houston Nomina Miami Beal Amal Houston Real Annual Pricepreciation Price Appreciation ARRAPRADES CARREGARRASIL REBRAREAS CORRER 8 fx D G a Miami 1 2 3 5 6 1 2 3 4 1 2 3 4 1 2 3 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Year 1975 1975 1975 1975 1976 1976 1976 1976 1972 1972 1977 1977 1978 1978 1978 1978 1979 1979 1979 1979 1980 1980 1980 1980 Houston Inflation 527 53.6 54.6 55.5 51.59 55.9 58.32 56.8 58 57.6 57.8 58.2 59.94 59.5 65.9 60.7 64.23 61.4 67.66 62.1 69.45 74.66 652 73.44 66.5 76.89 67.7 78.71 698 83.32 723 84.67 74.6 85.55 76.7 88.07 80.1 91.92 82.7 90.89 84.0 92.8 863 34.85 36.04 36.44 37.99 37.12 39.2 40.28 41.91 39.72 43.05 42.34 45.72 48.42 48:39 53.62 56.79 586 57.43 63.32 64.88 1 2 3 4 1 2 3 4 1 2 3 z Read Only - You fx D du 24 25 26 27 28 29 30 31 1980 1980 1981 1981 1981 1981 1982 1982 1982 1982 1983 1983 1983 1983 1984 1984 1984 1984 1985 1985 1985 1985 1986 1986 1986 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 33 34 35 36 63.32 64.88 67.13 66.99 55.28 66.65 69.89 70.22 67.47 70.26 68.96 68.45 68.88 69.11 67.73 69.56 67.03 68.46 68.91 67.76 66.98 66.99 68.6 70.2 71.17 90.89 92.8 89.81 96.01 97.58 100.37 106.2 107.95 105.65 107.81 107.81 108.4 107.62 106.86 103.45 103.37 103.95 101.38 97.99 95.83 94.32 92.13 93.16 944 92.61 84.0 86.3 88.5 90.6 932 94.0 94.5 97.0 97.9 97.6 97.9 99.5 100.7 101.3 102.6 103.7 106.0 106.3 106.4 107.6 108.3 109.3 108.8 109.5 110.2 37 39 40 41 4 1 2 3 45 46 47 4 1 2 3 fx B c D E F G 46 47 1 2 3 4 1 2 3 4 SO 51 52 53 1 2 3 55 56 57 58 59 60 61 1 1986 1986 1986 1986 1987 1987 1987 1987 1988 1988 1988 1988 1989 1989 1989 1989 1990 1990 1990 1990 1991 1991 1991 1991 1992 1992 1992 1992 1993 1993 3 4 1 2 3 4 68.6 70.2 71.17 7101 68.3 72.51 73.64 74.43 7452 76.5 77.69 79.09 79.33 80.13 81.66 81.51 83.21 82.82 83.65 83.36 84 58 84.73 85.38 86.96 87.99 87.73 89.04 89.15 90.45 92.76 93.16 94.4 92.61 88.22 88.1 86.56 83.78 81.55 81.87 84.32 85.OS 85.59 86.37 88.45 90.37 90.89 91.48 92.53 93.74 93.56 94.46 95.65 96.21 97.19 98.89 98.42 100.18 100.07 100.38 100.87 108.8 109.5 1102 110.5 1121 113.5 115.0 115.4 116.5 118.0 119.8 120.5 1223 124.1 125.0 126.1 128.7 129.9 132.7 133.8 135.0 136.0 1372 137.9 139.3 1402 141.3 141.9 143.6 144.4 65 66 67 1 2 3 4 1 2 3 70 71 72 73 74 75 1 2 A Read Only - You fx 4 B D E F 139.3 140.2 70 71 72 73 74 75 76 77 78 1 2 3 4 1 2 3 4 81 82 83 84 85 85 87 88 1992 1992 1992 1992 1993 1993 1993 1993 1994 1994 1994 1994 1995 1995 1995 1995 1996 1996 1996 1996 1997 1997 1997 1997 1998 1 2 3 4 1 2 3 4 87.99 87.73 89.04 89.15 90.45 92.76 95.61 96.95 97.65 98.55 98.84 98.97 100 101.5 103.64 105.29 106.61 106.01 105.67 107.19 108.04 107,68 108.08 110.14 113.35 98.89 98.42 100.18 100.07 100.38 100.87 101.68 102.25 102.25 101.71 101.67 100.26 100 101.67 102.16 102.74 104.24 103.74 103.99 104.63 104.47 106.25 107.3 108.45 110.87 141.3 141.9 143.6 144.4 145.1 145.8 1472 148.0 149.4 149.7 1514 152.5 153.2 153.5 155.7 156.7 157.8 158.6 160.0 160.3 161.2 161.3 162.2 1 2 3 4 1 2 3 4 1 91 92 93 X Read Only - You fx 4 P C D E F 93 94 95 96 97 4 1 2 3 4 1 2 3 4 1 2 3 99 100 1997 1998 1998 1998 1998 1999 1999 1999 1999 2000 2000 2000 2000 2001 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 2004 2004 2005 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 4 1 2 3 110.14 113.35 113.35 113.73 115.91 116.32 115.6 116.9 118.65 121.32 123.09 125.16 128.15 132.2 136.56 140.36 144.98 149.12 154.71 161.09 166.01 170.76 176.21 180.8 190.87 197.66 206.91 220.75 230.2 242.23 108.45 110.87 111.99 114.31 115.72 117.28 120.24 123.21 125.78 127.26 129.24 130.99 132.03 136.29 137.76 139.61 140.99 141.7 143.45 145.22 147.36 148.43 149.34 150.23 151.72 153.28 154.66 156.69 157.68 160.22 161.3 1622 163.0 163.6 163.9 165.0 166.2 167.9 168.3 171.2 1724 173.7 174.0 176.2 178.0 178.3 176.7 178.8 179.9 181.0 180.9 1842 183.7 185.2 184.3 1874 189.7 189.9 190.3 193.3 1 2 3 4 1 2 3 1 2 3 4 1 Read Oniy YOL fx 4 C E F 120 121 122 3 4 1 2 3 4 1 2 3 4 1 2 3 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 1 2 3 4 220.75 230.2 242.23 258.75 276.27 294.66 309.5 321.9 331.11 337.48 342.38 343.25 337.97 331.22 315.56 291.89 256.05 236.14 226.16 213.32 199.05 200.55 195.61 193.88 196.88 194.03 184.56 180.05 181.61 184.29 100 52 156.69 157.68 160.22 161.23 163.58 166.15 168.72 171.22 173.67 175.05 177.33 180.2 180.99 182.13 184.22 184.8 185.97 185.6 188.27 186.76 185.45 185.04 183.8 184.21 184.76 184.45 181.18 180.76 182.19 182.73 102 QA 189.9 190.3 193.3 194.5 198.8 196.8 199.8 202.9 202.9 201.8 205.352 208.352 208.490 210.036 213.528 218.815 218.783 210.228 212.709 215.693 215.969 215.949 217.631 217.965 218.439 219.179 223.467 225.722 226.889 225.672 1 2 3 143 144 1 2 3 145 146 147 148 149 1 2 3 SER 1 fx 4 1 2 3 4 2011 2011 2011 2011 2012 2012 2012 2012 1 2 3 4 2013 1 2 3 1 2 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 3 4 184.56 180.05 181.61 184.29 180.57 181.79 186.15 193.27 196 205.2 210.22 217.64 222.3 228.56 236.95 242.48 244.42 251.76 260.12 265.12 272.37 277.33 283.61 289 295.67 302.09 306 313.69 319.81 327.43 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 181.18 180.76 182.19 182.73 183.84 186.3 187.69 189.83 191.83 195.45 200.46 205.1 209.17 217 224.51 227.68 230.27 237.35 240.63 241.86 242.67 247.59 250.61 253.22 254.5 262.22 262.74 267.44 269.76 277.07 223.467 225.722 226.889 225.672 229.392 229.478 231.407 229.601 232.773 233.504 234.149 233.049 236.293 238.343 238.031 234.812 236.119 238.638 237.945 236.525 239.261 241,038 241.428 241.432 243.524 244.737 245.708 246.524 249.554 251.989 1 2 4 1 2 4 1 2 3 1 2 AC