Computational Question: $(2$ points$)$ Download the monthly S&P $500$ prices from Pro$-$

fessor Shiller's website: iedata.xls $($click the links$).$

Two notes on the Shiller Data: First, you may use nominal prices and dividends

$($columns B and $C$ in the data worksheet$)$ or real prices and dividends $($columns $H$ and

I in the data worksheet$).$ The problem set solutions will use the nominal values. Second,

the dividends are provided as annualized values in the data. In your calculations, you

can convert these to monthly values by dividing by $12($e$.$g$.,$ if using column $C,$ when

computing returns, compute the dividend in a given month as the value in column $C$

divided by $12).$

$($a$)$ What is your best estimate for the next month's return?

$($b$)$ What would your annualized HPR have been if you invested at the start of the

index?

$($c$)$ When did the lowest monthly return occur? What happened?