Question $4$

The price of an asset is worth $$10,000$ today, and will appreciate to $$11,000$ by next year. All else equal, if inflation averages $10\%$ throughout the year, what would be the real value of that asset?

hint: Inflation depreciates the buying power of money.

Question $5$

You invested into a $60/40($stock$/$bond$)$ portfolio at the beginning of $2023$ that yielded $7\%$ overall real returns at the end of the year. The value of your portfolio at the end of the year was $$2,000.$ What was the value of your portfolio at the beginning of $2023?$

Question $6$

If the price of a Facebook stock $($Ticker: FB sells for $$380$ and this stock earns $$15$ over the course of one quarter, what is the ratio for the price and earnings of this stock? In other words, what is the price of the stock per each dollar of earnings? Simply your fraction as much as possible.