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Math Help - International Fisher effect forumla - Urgent help! Exam in 2 days!

  1. #1
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    International Fisher effect forumla - Urgent help! Exam in 2 days!



    Can anyone tell me how my lecturer got to the answer? E(St+1)= 0.7262. I've been trying to solve this for the last two hours now btw i think she converts the percentages into decimals So 7% would = 0.07
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  2. #2
    Senior Member jakncoke's Avatar
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    Re: International Fisher effect forumla - Urgent help! Exam in 2 days!

    just algebra, .70 * \frac{.11 - .07}{1 + .07} + .70 = E(S_{t+1}) = .72
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    Re: International Fisher effect forumla - Urgent help! Exam in 2 days!

    Thanks man. I know it was a stupid question. Haven't done Algebra for nearly 7 years now so its all lost to me and it doesn't help when you are dyslexic! Really appreciate your help and thanks for jogging my memory.
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    Senior Member jakncoke's Avatar
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    Re: International Fisher effect forumla - Urgent help! Exam in 2 days!

    Quote Originally Posted by Kolo View Post
    Thanks man. I know it was a stupid question. Haven't done Algebra for nearly 7 years now so its all lost to me and it doesn't help when you are dyslexic! Really appreciate your help and thanks for jogging my memory.
    no probs bro, keep at it.
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