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I have difficulty in understanding the formula:

Real stock price index(t) = Nominal stock price index(t) * CPI(2009) / CPI(t)

If t=2009, then

Real stock price index(2009) = Nominal stock price index(2009)?

...not looking intuitive. Can you elaborate on it? Thanks.



Edited 1 time(s). Last edit at Wednesday, May 18, 2011 at 11:12AM by deriv108.

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