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Suppose that a large stock index has the following annual real returns over the next seven years. Year 1: 13.8% Year 2: 18.2% Year 3:
Suppose that a large stock index has the following annual real returns over the next seven years.
Year 1: 13.8%
Year 2: 18.2%
Year 3: 20.2%
Year 4: -9.7%
Year 5: 15.3%
Year 6: 2.2%
Year 7: 5%
Assuming a representative initial dollar is invested in this index, what is the ending value of the corresponding real wealth index after 7 years?
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