Over a 40-year period, an asset had an arithmetic return of 11.2 percent and a geometric return

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Over a 40-year period, an asset had an arithmetic return of 11.2 percent and a geometric return of 9.4 percent. Using Blume’s formula, what is your best estimate of the future annual returns over 5 years? 10 years? 20 years?

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Fundamentals of Corporate Finance

ISBN: 978-1260153590

12th edition

Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan

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Question Posted: Jul 17, 2019 11:30 AM

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Over a 40-year period, an asset had an arithmetic return of 11.2 percent and a geometric return

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Fundamentals of Corporate Finance

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