A stock has a geometric average return of 14.6 percent and an arithmetic average return of 15.5 percent based on the last 21 years. What is the estimated average rate of return for the next six years based on Blume's formula?

• A. 15.28 percent
• B. 15.42 percent
• C. 15.18 percent
• D. 14.96 percent
• E. 14.79 percent

Over the past four years, a stock produced returns of 6 percent, 8 percent, 9 percent, and 2 percent, respectively. Based on these four years, what range of returns would you expect to see 95 percent of the time?

A. .05 percent to 12.45 percent
B. 5.80 percent to 27.02 percent
C. -.23 percent to 24.39 percent
D. -.02 percent to 24.39 percent
E. -5.80 percent to 23.30 percent