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Problem:

Over a 42-year period an asset had an arithmetic return of 12.60 percent and a geometric return of 10.50 percent.

Requirement:

Question: Using Blume's formula, what is your best estimate of the future annual returns over 8 years? 12 years? 21 years?

Note: Please show guided help with steps and answer.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91172955

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