Over a 48-year period an asset had an arithmetic return of 13.2 percent and a geometric return of 11.1 percent.

Using Blume’s formula, what is your best estimate of the future annual returns over 7 years? 13 years? 24 years? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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To estimate future annual returns using Blumes formula w... View the full answer