Question

5. 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.

6. Given your results from the previous problem:

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 we

discussed in the beginning of this course? Briefly explain.

How do I get you the excel with the data??