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2 questions · 1 formulas

Missing return given target

(1+G)^n = (1+r1)…(1+r(n−1))(1+x) → solve x

Returns & CompoundingE-level★ High priority — official Canvas example

Beginning stock price SEK 120, dividend SEK 6, total return 15%. Find ending price.

→ B) SEK 132

Canvas Example MCQ — Q19

A) SEK 126
B) SEK 132
C) SEK 138
D) SEK 144
E) None of A-D is close; write the correct answer.

0.15 = (P1-120+6)/120. Multiply by 120: 18 = P1-114, so P1 = 132.

Rule: Rearrange total-return formula when one component is missing.

Logs & DummiesD–A levelNormal priority

Which of the following interpretations of the coefficient of colonial variable is most correct?

→ Answer ambiguous in source

Old Exam — Dec 2022, Q22

Given: The source PDF is internally ambiguous: it highlights both A and B. The displayed output omits the colonial coefficient sign, so the sign cannot be recovered from that page alone.

A) A colonial house in on average about 9.36 % less expensive than non-colonial houses.
B) A colonial house in on average about 9.36 % more expensive than non-colonial houses.
C) A colonial house in on average about 18.45 % less expensive than non-colonial houses.
D) A colonial house in on average about 18.45 % more expensive than non-colonial houses.
E) None of the above (A, B, C, D) is close to be correct.

Do not memorize the old key here. The source highlights both A and B, and the coefficient sign is missing from the displayed output. Rule: dummy in log(Y): positive b -> higher Y; negative b -> lower Y. Approx effect=100b%; exact=100(e^b-1)%.

Rule: Identify model units and form before calculating. Never confuse coefficient size, significance, R2 and prediction accuracy.

⚠ Source answer is ambiguous: the original key highlights both A and B, and the coefficient sign is missing. Excluded from scored practice.