Question: You have found an asset with an arithmetic average return of 1 2 . 6 0 percent and a geometric average return of 1 0

You have found an asset with an arithmetic average return of 12.60 percent and a geometric average return of 10.24 percent. 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? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
\table[[,Estimated Return,],[5 years,,%
 You have found an asset with an arithmetic average return of

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!