5. 20. Blumes Formula [LO 12.1] Over a 40-year period, an asset had an arithmetic return of...

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5. 20.

Blume’s Formula [LO 12.1] Over a 40-year period, an asset had an arithmetic return of 11.2 per cent and a geometric return of 9.4 per cent. Using Blume’s formula, what is your best estimate of the future annual returns over 5 years? 10 years? 20 years?

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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