Question: Over a 40-year period an asset had an arithmetic return of 12.5 percent and a geometric return of 10.4 percent. Using Blumes formula, what is

Over a 40-year period an asset had an arithmetic return of 12.5 percent and a geometric return of 10.4 percent. Using Blumes formula, what is your best estimate of the future annual returns over 7 years? 11 years? 20 years?

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