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?
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?