Over a 46-year period an asset had an arithmetic return of 11.9 percent and a geometric return of 9.8 percent. Using Blume’s formula, what is your best estimate of the future annual returns over 8 years? 13 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 8 years % 13 years % 23 years %

Over a 46-year period an asset had an arithmetic return of 11.9 percent and a geometric return of 9.8 percent. Using Blume’s formula, what is your best estimate of the future annual returns over 8 years? 13 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 8 years % 13 years % 23 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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