Question: Forecasting Returns ( LO 1 ) You have found an asset with a 1 2 . 6 0 percent arithmetic average return and a 1

Forecasting Returns (LO1) You have found an asset with a 12.60 percent arithmetic average
return and a 10.24 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?
Forecasting Returns (LO1) You have found an asset with a 12.60

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