6. [3] Over a 40-year period, an asset had an arithmetic return of 12.8% and a geometric return of 9.7%. Using Blumes formula, what is your best estimate of the future annual returns over 5 years? 10 years? 7. [4] Based on the following information, calculate the expected return and standard deviation for Stock A and B. State of Economy Prob. Of State Stock A Returns Stock B Returns Recession 0.2 0.04 -0.17 Normal 0.5 0.09 0.12 Boom 0.3 0.17 0.27