Question: Over a 46-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 11 percent. Using Blumes formula, what is

Over a 46-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 11 percent.

Using Blumes formula, what is your best estimate of the future annual returns over 6 years? 12 years? 23 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Future annual returns
6 years	%
12 years	%
23 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!

Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or...

Over a 46-year period an asset had an arithmetic return of 11.9 percent and a geometric return of 9.8 percent. Using Blumes formula, what is your best estimate of the future annual returns over 8...

6) Over a 25-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 12.6 percent. Using Blume's formula, what is your best estimate of the future annual returns over...

Over a 25-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 12.94 percent. Using Blume's formula, what is your best estimate of the future annual returns over...

Over a 91-year period, an asset had an arithmetic return of 10.5 percent and a geometric return of 8.9 percent. What is your best estimate of the future annual returns over 25 years using Blume's...

Over a 48-year period an asset had an arithmetic return of 13.20 percent and a geometric return of 11.10 percent. Using Blume's formula, what is your best estimate of the future annual returns over 7...

3. Forecasting Returns Over a 30-year period, an asset had an arithmetic return of 12.8 percent and a geometric return of 10.7 percent. Using Blume's formula, what is your best estimate of the future...

Over a 42-year period an asset had an arithmetic return of 11.7 percent and a geometric return of 9.6 percent. Using Blumes formula, what is your best estimate of the future annual returns over 6...

Over a 42-year period an asset had an arithmetic return of 11.7 percent and a geometric return of 9.6 percent Using Blume's formula, what is your best estimate of the future annual returns over 6...

Develop a brief plan to revitalize a neighborhood business district nearest your campus.

Improving team effectiveness is a common theme across organizations. Whether the team is a standing group, e.g. a sales team, or a project based cross-functional team that comes together to deal with...

5 . Decision rules are used to determine whether projects are accepted or rejected based on that capital budgeting method. Which of the following is not a proper decision rule for the related capital...

2023 1040 form 1.Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent...