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Over a 25 year an asset had an arithmetic return of 3.1% and a geometric return of 12.6%. Using blume's formula, what is the best estimate of the future annual returns over the next 10 years?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter2: Descriptive Statistics

Section: Chapter Questions

Problem 16P: If an asset declines in value from 5,000 to 3,500 over nine years, what is the mean annual growth...

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Over a 25 year an asset had an arithmetic return of 3.1% and a geometric return of 12.6%. Using blume's formula, what is the best estimate of the future annual returns over the next 10 years?

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