Question: Using 25 years of data, you estimate the arithmetic average return for a certain stock to be 53% and the geometric average return to be
Using 25 years of data, you estimate the arithmetic average return for a certain stock to be 53% and the geometric average return to be 4.4%. Using Blume's formula, what is your average forecasted return over a 7 year period
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
