Question: Over a 34-year period an asset had an arithmetic return of 12.2 percent and a geometric return of 10.1 percent. Using Blumes formula, what is

Over a 34-year period an asset had an arithmetic return of 12.2 percent and a geometric return of 10.1 percent.

Using Blumes formula, what is your best estimate of the future annual returns over 4 years? 8 years? 17 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Future annual returns
4 years %
8 years %
17 years %

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!