You have found an asset with a 12.20 percent arithmetic average return and a 9.95 percent geometric

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You have found an asset with a 12.20 percent arithmetic average return and a 9.95 percent geometric return. Your observation period is 40 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years?

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Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

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Question Posted: Sep 19, 2012 04:28 AM

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You have found an asset with a 12.20 percent arithmetic average return and a 9.95 percent geometric

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5 year estimate 5 140 1 995 40 540 ...View the full answer

Fundamentals of Investments Valuation and Management

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